KOTA KINABALU, May 6 — Warisan vice president Junz Wong urged that Sabah government today to explain an unverified letter purporting that state land was used to secure a loan from a Chinese consortium.

Wong alleged that he received a copy of the letter that, according to him, bore the state’s letterhead and stated that the Tanjung Aru Eco Development (TAED) was offered as collateral.

“From the contents of this letter, which I cannot verify, it would seem to me that the Malaysian government, supported by the state government, has agreed to use the 840 acres of land that comes under TAED, as collateral for hybrid term loan from China government,” he said.

Wong said he hoped caretaker chief minister Tan Sri Musa Aman could verify the authenticity of the letter.

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He said he was not against development for the greater good of the state, but that it should not be at the expense of the state, people and the environment.

Wong also suggested that it would be wiser to obtain the loan from local institutions instead.

The Tanjung Aru project mooted in 2013 is already controversial due to environmental issues as well as public concerns that it would no longer be accessible to the average man on the street.

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Development is expected in phases but has been put off due to planning and approval issues. It was last said that works would begin in early 2018 but so far, vendors were finally told to vacate their premises and relocate two months ago.