KOTA KINABALU: The Sabah government cannot bail out the abandoned PacifiCity development but will assist affected buyers within the law and regulations governing the use of public funds, says Deputy Chief Minister II Datuk Seri Masidi Manjun.
Masidi, who is also state Finance Minister, said the state government understood the plight of affected buyers and remains committed to assisting them within legal limits.
The state Cabinet has also agreed for the Local Government and Housing Ministry to coordinate a meeting with relevant stakeholders, including potential investors, to resolve issues surrounding the stalled project.
“If we expect the government to bail out every failed housing project, then we will have a big problem.
“It's not that we don't sympathise with the buyers. These are people who have invested their life savings. However, there are regulations and policies surrounding the use of public money.
“We can coordinate a rescue plan. But eventually, there must be a white knight (investor),” he told reporters after officiating the Sabah Carbon Market Forum here Thursday (Sept 24).
Addressing claims by buyers that the state-owned Sabah Development Bank (SDB) had not acted to resolve the matter, Masidi explained that the bank was the only project's financier and not its developer.
He said SDB was owed nearly RM300mil by the developer, which is now under court-ordered liquidation, and continues to seek investors to take over the project.
“The bank is prepared to absorb a haircut of up to 50 per cent on the debt to facilitate a viable white knight,” he said, adding that SDB had so far conducted due diligence on two interested parties, but found that they did not have the necessary credentials.
The integrated PacifiCity development, on prime land fronting Likas Bay, has remained stalled since it was launched more than a decade ago.
The RM1bil project was to comprise residential units, office space, a shopping mall, hotels and commercial lots.
The land is owned by Majlis Kebajikan dan Sukan Anggota-Anggota Kerajaan Malaysia (Maksak) and was to be developed by a private company.
SDB previously said that it would continue to work with the private liquidator, purchasers, government agencies and other stakeholders to facilitate any credible proposal for PacifiCity's sustainable revival.
