Hitting where it hurts

NST 16/02/2002

Errant housing developers will be made to pay for breaking the law.

The Housing Development (Control and Licensing) Act 1966 will see an increase in penalties for offences against the Act.

Penalties for the following offences have been enhanced:

• the fine on conviction under section 7A with regard to the housing development account is now increased from a sum of not less than RM50,000 but which not exceed RM500,000. The previous maximum fine was RM100,000.
• any unlicensed housing developer or any unlicensed housing developer who assumes or uses in relation to his business the words "housing developer" or any licensed housing developer who fails to comply with any of the conditions imposed on the license will on conviction face a fine of not less than RM50,000 and not more then RM500,000. The previous minimum and maximum sums were RM10,000 and RM100,000 respectively.
• any housing developer who fails to perform his duties under section 7 or sells or merge his business without the approval of the Controller under section 8 or fails to comply with the Minister's directions given under sections 11 and 12 including failing to provide that Company directed by the Minister to take over the housing developer with such facilities as the Controller may consider necessary will on conviction be liable to a fine not exceeding RM5,000 if the offence is continued after conviction. Previously, the amount was RM10,000 and the offender was liable to fixed daily fine of RM5,000.

• any one who continues to act as or hold office of a director, manager or a secretary of a licensed housing developer after he has become a bankrupt or suspended or compounded with his creditors or been convicted of an offence involving dishonesty or fraud or any one who acts as or continues to act as or hold office as a director or is directly concerned in the management of the business of the licensed housing developer without the approval of the Minister after that business of that licensed housing developer has been wound up by the court will on conviction be liable to an increased fine of not exceeding RM50,000 from the previous sum of RM10,000.

• the maximum fine for offences where no penalty is expressly provided in the Act will face an increased fine of not exceeding RM50,000 from the previous maximum sum of RM10,000.

• any person who is a director, manager, secretary, agent, clerk or a servant of a housing developer deemed to be guilty of an offence committed by a housing developer will now on conviction face a fine of not exceeding RM50,000 from the previous maximum sum of RM10,000.

This however is balanced with the Controller of Housing's power under the new section 23A to compound such offences.

If the offence is compounded, no prosecution shall thereafter be instituted as respects the compounded offence, Section 24 of the Housing Developers (Control and Licensing) Act 1966 has also been amended to include more powers for the Minister to make regulations, inter alia, to prescribe offences which may be compounded and the method and procedure for compounding such offences.