Where Did Rm16mil Bond Money Go Warisan Man Asks Sabah Govt


Warisan vice-president Junz Wong said the state government must come clean about where the money had gone. (Facebook pic)
PETALING JAYA: The Sabah government has been accused of breaching its statutory duty after it admitted to allowing a RM16 million bank guarantee for a condominium housing project to expire.
Warisan vice-president Junz Wong said buyers were informed at a meeting on Sept 2 that their 5% performance bond had not been renewed since 2020 and had lapsed, the Borneo Post reported.
A performance bond is a guarantee against the failure of the contractor to complete the project.
Wong said the money was consequently released. He urged the state government to come clean on what had happened to the RM16 million.
“Where did the money go? Why would the ministry of local government and housing admit that the guarantee has expired and allowed it to happen?” Wong was quoted as saying.
He accused the ministry of having “clearly breached its statutory duty” to ensure that the guarantee was properly renewed and taken care of.
Wong said the ministry did not disclose where the money went, but stated that potential white knights would have to pay the outstanding amount if they wanted to rescue the project.
Wong ridiculed the ministry’s statement that the white knights must replace the guarantee. “The guarantee is supposed to be used for such dire situations,” he said.
The ministry had also stated that the buyers would have to top up the RM16 million if the white knights refused to do so. Wong said such stipulations are a violation of the law. - FMT


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