Protecting the interest of house buyers

04/07/1999 NST

Kuala Lumpur, Sat. - A revamp of current procedures and penalties is the only way to protect consumers against unscrupulous housing developers, Malaysian Consumers Arbitration and Redress Centre legal adviser Jacob George said today.

He said  the setting up of the committee to review the Housing Developers Act 1966, was therefore laudable.

"However, the review of  laws controlling the housing industry will only be successful if several measures are implemented. Merely addressing existing loopholes will not resolve issues that have plaqued the industry for decades," he said.

"Penalties should be extended to a mandatory jail term and the blacklisting of individuals like developers, financiers, technicians and architects, not just the companies involved.

"If individuals are not blacklisted, they can always form another company and carry on their unscrupulous ways."

He said it was important to have a data bank on the individuals involved in the housing industry.

"The data bank should be prepared based on their track record of delivering quality homes using the value-for-money concept."

He said housing plans, including information on construction and materials used and representations in advertisements, must also be audited before approval, during the project's mid-stage and upon completion.

"The committee itself should be transparent, accountable and have diversified representation. Therefore, they too must be open to audits."

Housing and Local Government Minister Datuk Dr Ting Chew Peh has said on Thursday that the Government was reviewing the law in order to rein in developers and control the housing industry.