Desticom gets deal to revive housing projects
02/07/2002
Malay Mail
LITTLE-known Desticom Sdn Bhd has been assigned to revive housing
projects
abandoned by developers during the economic slowdown of 1997,
government
sources said yesterday.
The company has so far secured an initial RM200 million contract to
complete the projects, and more contracts are expected. The company
is now
expected to revive projects comprising low-cost and low-medium
houses as
well as shophouses, the source told Mail Money yesterday.
The Government had in April 2002 directed Syarikat Perumahan Negara
Bhd
(SPNB) to work on reviving some 70 of 514 abandoned housing
projects.
Since then, contracts were awarded to several parties with the bulk
going
to Desticom.
Other companies that are actively involved in reviving abandoned
projects include Domain Resources Sdn Bhd and Wolley Development Sdn
Bhd.
SPNB is wholly-owned by the Finance Ministry.
The company was given an initial allocation of RM1 billion for the
purpose of reviving stalled projects.
While SPNB is believed to have received an initial RM300 million to
start some of the projects which will be revived in stages, the MOF
firm
has put in a request for additional allocation.
The MOF is believed to have approved the request in principle but
will
only disburse the funds when the need arises.
During the economic slowdown in 1997, most developers had completed
between 20 and 65 per cent of their housing units when they
encountered
financial difficulties.
