1Borneo electricity supply restored after RM3.5 mln payment
KOTA KINABALU: The tenants of 1Borneo Hypermall heaved a sigh of relief as the mall's electricity supply was restored following its payment of RM3.5 million to Sabah Electricity Sdn Bhd (SESB).
The electricity supply was restored at around 3:30pm yesterday, after 1Borneo Management Corporation (1BMC) and 1Borneo Hypermall Shoplot Owners Association (1BOSA) made a payment of RM3 million and RM500,000, respectively. SESB received the payment before 3 pm yesterday.
1BOSA chairman Datuk Tan Tiang Lai said the association made the decision to intervene during a meeting with his fellow committee members and SESB top management to discuss the said matter.
As a result of the discussion and after considering the predicament of the tenants, SESB had requested 1BOSA and 1BMC to pay the aforementioned amounts. It was agreed that power restoration would take place once the payment of the agreed amount of RM3.5 million was done.
The remaining amount would be paid by installment, with RM100,000 to be paid on a monthly basis for the next 12 months.
After the thirteenth month, 1BMC would have to pay RM150,000 per month until the debt is fully paid off.
In late June, local media broke the news that 1BMC had a total debt of RM9.2 million. This caused a stir among the public, especially the tenants, as 1Borneo was at risk of losing its electricity supply completely.
On July 18, it was reported that 1Borneo was even on the verge of being ‘shut down' in the event they fail to reach an ‘amicable settlement' with SESB.
On Thursday, Infrastructure Development Minister Datuk Peter Anthony had chaired a meeting with 1BMC, 1BOSA and SESB to promptly resolve the issue.
During the meeting, it was decided that 1BMC would have to pay RM3.5 million before 1 pm, Friday.
In this regard, Tan had expressed his gratitude to Peter and all the parties involved in the quest to solve the plight of the mall, which happens to be the largest one in the state.
“1BOSA decided to step in as we're not satisfied with the explanation given by the mall liquidator over the bill issue,” Tan said.
It is understood that 1BOSA had previously requested for the account report from 1BMC twice, but the request was ignored.
“By right, 1BMC is supposed to submit its account report every six months but the management has failed to do so.
“1BOSA members felt they have been victimised. We also feel SESB has become the victim in the bill matters, which is supposed to be settled by 1BMC in the first place,” Tan added.
As a result, the mall's developer Sagajuta (Sabah) Sdn Bhd (in liquidation) - had appointed 1BOSA to take over the management, Tan explained, adding that a letter on the matter was issued on July 12.
SESB disconnected the power supply for the air-conditioning at the mall for the second time on July 11 due to an RM8.7 million outstanding bill.
The first disconnection was made on June 27 when the hypermall management failed to settle some RM9.3 million in arrears. 1BMC then proceeded to pay RM700,000 to SESB at around noon on the same day.
Meanwhile, in a separate statement yesterday, the mall management thanked Peter, Sepanggar Member of Parliament Datuk Azis Jamman, Karambunai assemblyman Azhar Matussin and Assistant Minister to the Chief Minister Jimmy Wong for their tireless efforts negotiating with SESB.
“With their presence in this matter, SESB was able to come to an agreement with a settlement proposal. Their great effort has truly saved the jobs of thousands of works, keeping businesses alive and helping shoplot owners maintaining a value in their assets in 1Borneo Hypermall.
“Without their effort, 1Borneo Hypermall would have ceased operations and many livelihoods would be affected. We would also like to thank Datuk Micahel Lui and the The Tiong Hua Chamber of Commerce and Industry Kota Kinabalu for their assistance,” the statement read.