PUTRAJAYA: The cancellation of the share sale agreement (SSA) for the Bandar Malaysia project was a commercial decision.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the cancellation was made due to the failure of the purchasing companies to settle the payments.
"The decision to cancel the SSA was made by the TRX City Sdn Bhd board of directors as there was a breach of contract.
"The payments had been delayed many times, probably more than 10 times. As Bandar Malaysia needs to be developed according to the stipulated period, we need to look at the regulations.
"The cancellation was fully based on a commercial decision and opportunity loss," Zahid told reporters after attending the Home Ministry's monthly assembly, here today.
He was responding to a question whether the SSA cancellation between TRX City Sdn Bhd, Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (M) Sdn Bhd (CREC) for the Bandar Malaysia was decided by Prime Minister Datuk Seri Najib Razak.
TRX City Sdn Bhd announced that the Bandar Malaysia SSA with IWH and CREC involving 60 per cent of the issued and paid-up capital of Bandar Malaysia Sdn Bhd had lapsed due to failure of the purchasing companies to fulfil payment obligations.
It was reported that the consortium, IWH-CREC Sdn Bhd, had failed to pay RM7.42 billion for the 60 per cent stake despite it being granted repeated extensions since December 2015.