MF E40.9.

Minister Thru: DS(S) [This minute has been cleared with DS(S) D(!S) and "D(E#)$ Approval to Write Off Former Cadet Officers Mess (No. 28 Guseng oad! Amo"! C#ina$ %n &9 'an 9( a c)urt )rder was recei*ed t) wind u+ M,S #e)+le-s #ar.wa/ De*el)+ment #te 0td and the %11icial 2ecei*er be a++)inted as the 0i3uidat)r. Ministr/ )1 0aw is see.in4 Minister-s a++r)*al t) write5)11 land dues 1r)m M,S #e)+le-s #ar.wa/ De*el)+ment #te 0td in res+ect )1 the de*el)+ment site .n)wn as #ar.wa/ 6uilders- !entre. The )utstandin4 bad debts 1)r write5)11 stands at 7&0 188 989.4( a1ter )11settin4 the sales +r)ceeds 1r)m the uns)ld )11ice units which am)unt t) 78 894 40(.:4. 6ac.4r)und & The ab)*e site was s)ld under ;2<-s sale )1 sites +r)4ramme in 1981 1)r sh)++in4,)11ice de*el)+ment t) M,s #e)+le-s #ar.wa/ De*el)+ment #te 0td (##=D) 1)r 7(: (>0 0(9.:&. The de*el)+ment )n site is .n)wn as #ar.wa/ 6uilders- !entre. ( The de*el)+er has been de1aultin4 )n his +a/ment )1 land +remium since 1984. Des+ite e?tensi)n )1 time 4i*en b/ ;2< and 0and %11ice 1)r the +a/ment )1 land +remium the de*el)+er c)uld n)t ma.e his +a/ments. The e?tensi)ns )1 time 4i*en are :5 (i) %n 8 'an 89 ;2< had )n behal1 )1 @)*ernment 4ranted t) the de*el)+er a (5/earl/ m)rat)rium 1)r +a/ment )1 the land +rice c)mmencin4 1r)m 1984. Durin4 the (5/ear +eri)d )nl/ annual interest )n the un+aid balance )1 the land +rice need t) be +aid. (ii) %n 1& Mar 8> 0and %11ice )11ered a 95/ear m)rat)rium c)mmencin4 1r)m 1 'an 8>. At was intended that this 1urther 95/ear m)rat)rium w)uld su+ersede the une?+ired term )1 the (5/ear m)rat)rium. ")we*er ##=D did n)t indicate whether it w)uld acce+t this 95/ear m)rat)rium n)r did it ma.e an/ +a/ment.

4 %n : Dec 90 <@-s !hamber and re+resentati*es 1r)m 0and %11ice and ;2< decided t) wind u+ the c)m+an/ and rec)*er the debts 1r)m the sales +r)ceeds )1 the uns)ld )11ice units in the de*el)+ment a1ter a meetin4 was held am)n4st them. The c)urt-s decisi)n t) wind u+ the c)m+an/ was handed d)wn )n &9 'an 9(. The )utstandin4 bad debts 1)r write5)11 stands at 7&0 188 989.4( a1ter )11settin4 the sales +r)ceeds 1r)m the uns)ld )11ice units which am)unt t) 78 894 40(.:4. The e*ents leadin4 t) this decisi)n are :5 (i) <1ter ##=D 1ailed t) 1urnish an/ +a/ments durin4 the +eri)d )1 the tw) m)rat)riums 4ranted 1)ll)win4 the <tt)rne/ @eneral(<@)-s ad*ice ;2< had +r)ceeded in acc)rdance with AM B) 4 Secti)n D t) ser*e n)tices )n ##=D t) rec)*er the am)unt due. ##=D res+)nded b/ a++ealin4 1)r 1urther e?tensi)n t) +a/ its debts and t) 1)rward all recei*ables 1r)m the sales )1 the )11ice units as +art +a/ment )1 the land dues. <@ was )1 the *iew that the de*el)+er sh)uld be 4i*en u+ t) (1 Dec 90 t) +a/ its debts as there was n) use1ul +ur+)se in windin45u+ the c)m+an/. ##=D had als) )btained !)urt-s a++r)*al t) sell the uns)ld units and the +r)ceeds w)uld be made t) 0and %11ice u+)n issuance )1 the Subsidiar/ Strata !erti1icate )1 Title (SS!T) as +a/ments t)wards the land +rice. (ii) An *iew )1 the ab)*e 0and %11ice and <@-s !hamber a4reed that i1 Ministr/ )1 0aw +ress ##=D hard en)u4h the/ sh)uld be able t) settle the )utstandin4 am)unt b/ (1 Dec 90. Ministr/ )1 0aw had .e+t their Minister in1)rmed )n the ab)*e status *ide their submissi)n dated 10 B)* 90. < c)+/ )1 that submissi)n is at Appendi% A. (iii) < meetin4 was held )n : Dec 90 between <@-s !hamber and re+resentati*es 1r)m 0and %11ice and ;2< t) decide )n the ne?t c)urse )1 acti)n as ##=D did n)t .ee+ u+ with the instalment +a/ments schedule. At was decided that <@ w)uld send the n)tice )1 intenti)n t) wind5u+ the c)m+an/. ")we*er ##=D a++ealed a4ainst the windin4 u+ acti)n and re3uested 9 m)nths- e?tensi)n t) settle the +a/ment. Ministr/ )1 0aw-s c)ncurrence t) reCect the a++eal and t) wind5u+ the c)m+an/ were s)u4ht *ide their minute dated &0 Feb 91. < c)+/ )1 that submissi)n is at Appendi% &. ;+)n Ministr/ )1 0aw-s a++r)*al )n & Mar 91 in 0<=0&9,:> D4 <@ had +r)ceeded t) institute windin45 u+ acti)n a4ainst ##=D. < c)+/ )1 Ministr/ )1 0aw-s a++r)*al is at Appendi% C. (i*) %n 8 Feb 9( <@ in1)rmed that the c)urt had )n &9 'an 9( )rdered that the c)m+an/ be w)und u+ and the %11icial 2ecei*er be a++)inted as the 0i3uidat)r. < c)+/ )1 <@-s letter is at Appendi% '. The )utstandin4 land dues as at &9 'an 9( was 7&9 04( (9(.1:. The 0i3uidat)r had in1)rmed Ministr/ )1 0aw that there were 9 )ther credit)rs claimin4 m)re than 7&.>m a4ainst ##=D and it was n)t li.el/ that an/ am)unt w)uld be +aid t) the credit)rs. (*) The submissi)n 1)r writin4 )11 the )utstandin4 land dues was withheld +endin4 +a/ments )1 the balance )1 the +urchase +rice that was )utstandin4 )n the s)ld units u+)n issuance )1 SS!T. %n && %ct 98 the 0i3uidat)r-s c)n*e/ancer in1)rmed that all the units had )btained SS!T. This is the Subsidiar/ Strata !erti1icate )1 Title that is issued 1)r each indi*idual unit a1ter its c)nstructi)n is c)m+leted. ;+)n issuance )1 SS!T a t)tal sum )1 78 894 40(.:4 1r)m the balance )1 the +urchase +rice )1 the s)ld units had

been remitted t) the 0and %11ice as +a/ments t)wards the )utstandin4 land +rice since ##=D has alread/ been w)und u+ )n &9 'an 9(. The last +a/ment am)unt )1 71 &0& 4&>.91 was remitted )n B)* 99. 2ec)mmendati)n 9 M%F su++)rts the rec)mmendati)n t) write )11 the am)unt )1 7&0 188 989.4( as des+ite the (5/ear m)rat)rium 4i*en b/ ;2< )n behal1 )1 the @)*ernment and the 95/ear m)rat)rium 4i*en b/ the 0and %11ice all )1 which are the e?tensi)ns )1 time 4i*en b/ ;2< and 0and %11ice 1)r the +a/ment )1 land +remium b/ ##=D in res+ect )1 #ar.wa/ 6uilders- !entre ##=D c)uld n)t ma.e the +a/ments.

!)nclusi)n 10 An acc)rdance t) the Dele4ati)n )1 #)wers (Ministr/ )1 Finance) B)ti1icati)n 1998 )nl/ Minister )1 Finance has the auth)rit/ t) write )11 l)sses )r de1iciencies )1 +ublic m)ne/s where 1raud )r ne4li4ence is n)t in*)l*ed am)untin4 t) ab)*e 7900 000. 11 Minister-s a++r)*al is s)u4ht t) write )11 the am)unt )1 7&0 188 989.4( 1)r the )utstandin4 bad debts a1ter )11settin4 the sales +r)ceeds 1r)m the uns)ld )11ice units which am)unt t) 78 894 40(.:4.

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