AmFinance agrees to payout

KUALA LUMPUR: Over a decade after losing their homes and loved ones, the 139 residents and owners of Highland Towers can heave a small sigh of relief now that AmFinance Bhd has agreed to pay out a sum of RM52mil. 

The RM52mil is full and final settlement for all claims, inclusive of costs, arising and or resulting from the three suits against AmFinance (formerly Arab-Malaysian Finance Bhd).  

It is understood that AmFinance will start making the payments in phases in about a week. 

“We are happy with the settlement as we have waited more than 11 years for it,” said Highland Towers Support Committee chairman Christopher Webb. 

“I am overseas now and will meet with the others on the other pending cases when I return to Malaysia,” he told The Star in a telephone interview. 

Highland Towers Owners and Residents Committee chairman Dr Benjamin George said, however, that this was not the end of the road for the 139 as their claim against the other defendants was still pending. 

On Dec 11, 1993, a landslide led to the collapse of Block 1 of Highland Towers, killing 48 people and the evacuation of residents in Blocks 2 and 3. 

Consequently, suits were filed against AmFinance and nine other defendants namely, Highland Properties Sdn Bhd; draughtsman Wong Tin Sang; engineer Wong Yuen Kean; Tropic Developments Sdn Bhd; Metrolux Sdn Bhd; MBf Property Services Sdn Bhd; Selangor government; Selangor Director of Lands and Mines and the Ampang Jaya Municipal Council. 

There were three suits against AmFinance and although an order was obtained to consolidate suits A and C (both involved Block 1) with suit B (relating to Blocks 2 and 3), suits A and C were adjourned pending the disposal of suit B. 

On Aug 11, 2000, High Court Justice Datuk James Foong apportioned liability in suit B as followed: 30% to AmFinance (single largest portion), 15% to the council, 20% to Metrolux and MBf Property Services, which owned and cleared land in the vicinity, and 10% each to Ting Sang and Yuen Kean. 

AmFinance appealed against the decision in the Court of Appeal in 2002 but failed. 

On Jan 2 last year, the company applied for leave to appeal in the Federal Court but when the application came up on Feb 4 this year, it was adjourned pending settlement negotiations. 

In announcing the out-of-court settlement involving its subsidiary to Bursa Malaysia on Monday, AMFB Holdings Bhd directors said that the settlement would not have any effect on the net tangible assets of the company for the financial year ending March 31. 

In return for the RM52mil payment, the plaintiffs are to “release and assign to AmFinance all rights of action in the suits against Highland Properties Sdn Bhd and the developer of Highland Towers. 

They are also to release or assign their rights and title to their individual apartment units in Highland Towers, their rights to the common property, unencumbered and free from claims of end financiers.