Kota Kinabalu: The proposed development of KK One at the site of the long-unfinished StarCity building, suffered a setback when its development plan (DP) needed to be revalidated.
Political Secretary to State Industrial Development and Entrepreneurship Minister Phoong Jin Zhe, Desmond Chan, said it was found that the “approval letter” from the Civil Aviation Authority Malaysia (CAAM) on Aug 7, 2020 was suspected to be forged.
The approved maximum height for the project was 205 metres above sea level.
“The Ministry was informed the developer, Skyrich Development Sdn Bhd, received the CAAM’s ‘approval letter’ via email as it was during the Movement Control Order (MCO) period,” he said after a dialogue session between StarCity Buyers’ Association (Pekestar) and representatives from Sabah Urban Development Corporation (SUDC) and the Industrial Development and Entrepreneurship Ministry (MIDE).
Phoong did not attend the dialogue and was represented by Chan, while SUDC was represented by its Chief Executive Officer Afizal Aldin.
Chan said Skyrich was also informed that there would be no hard copy of the letter. The letter was then used to apply for the DP from City Hall (DBKK).
DBKK issued the final DP for the project on Jan 5, 2021, and the Environment Protection Department approved the Environmental Impact Assessment (EIA) on Feb 8, 2021.
DBKK approved the project’s building plans on March 31, 2022.
However, Chan said MIDE found the CAAM’s “approval letter” suspicious.
“The Minister wondered why there was a big difference in height between the proposed KK One and nearby developments — some of them were about 100 metres, while KK One was approved for 205 metres.
“As such, we asked CAAM about it and were told by CAAM that there was never a submission from the developer.
“When the developer learned about it, they went to lodge a police report,” he said, adding the matter is still under investigation.
On Nov 2, 2023, DBKK also received a letter from CAAM stating that the department did not give any height restriction approval for the KK One development.
To this end, DBKK needs clarification on the height approved by the CAAM.
Skyrich had also submitted a reapplication for the height approval directly to CAAM and to appoint a consultant for the air dome study last November.
On Feb 20 this year, CAAM approved the maximum height of 48.2 metres above sea level.
However, on March 6 this year, Skyrich appealed to CAAM for a maximum height of 100 metres.
Chan hoped the result would be known by the end of next month or in May.
He stressed that the Government would ensure that the StarCity buyers were appropriately compensated.
“We want to ensure a win-win solution for everyone involved – the buyers, the developer and SUDC – to get a fair deal.
“If we do not reach a consensus, we will not proceed with anything,” he said.
Chan also disclosed that the Government is looking into alternative offers or solutions to solve the issue.
Also present were Pekestar President Stephen Wong.
