Ong: Developers must pay up
Sunday Star 15/02/2004 By Foong Pek Yee

KUALA LUMPUR: Thirty-three developers, who have yet to settle some RM1.2mil in compensation handed down by the Housing Tribunal for properties bought before Dec 1, 2002, must do so immediately or risk being fined or jailed.

Housing and Local Government Minister Datuk Seri Ong Ka Ting reminded them that the Court of Appeal had on Dec 18 last year reinstated all awards handed down by the tribunal to buyers of properties bought before Dec 1, 2002.

He said the ministry's enforcement unit would be issuing notices to them on the matter.

Ong said the RM1,278,333 in compensation was decided by the tribunal in 104 cases brought before it by housebuyers.

“Under Section 16 of the Housing Development Act, developers face a fine of up to RM5,000 or two years' jail or both upon conviction and an additional RM1,000 fine per day until settlement,” Ong told a press conference after handing appointment letters to five members of the tribunal here.

He said 809 awards worth RM4,333,349 and involving 58 developers had been handed down by the tribunal so far, including the 104 awards.

On Sept 4, the High Court declared that the tribunal did not have the jurisdiction to adjudicate disputes over property bought before Dec 1, 2002 – the date the tribunal took effect.

However, on Dec 18, the Court of Appeal set aside the High Court decision and reinstated all awards handed down by the tribunal to owners of properties bought before Dec 1, 2002.

On the tribunal’s performance, Ong said it had resolved 1,138 of the 4,060 cases as of Friday.

The minister said he had plans to expand the current seven-member tribunal chaired by Kamardin Hashim so that it can expedite cases further.

Tribunal members who received their letters of appointment from Ong yesterday were Haini Hassan who is also deputy chairman, Zamani Ibrahim, Datin Jayalakshmi Ramachandran SV Aiyer, Ng Seng Kiok and Asmadi Hussein while Wong Cheng Kiat was absent.

In Petaling Jaya, Housebuyers' Association (HBA) secretary-general Chang Kim Loong welcomed Ong's statement, saying those who did not honour the tribunal's decision should be strictly dealt with, reports SUSAN TAM.

He said HBA was confident that the minister had the conviction and resolution to see the proper enforcement of the law.

Meanwhile, the Real Estate and Housing Developers Association of Malaysia (Rehda) said developers who were dissatisfied with the Court of Appeal's decision were seeking a judicial review, reports LAM LI.

Its adviser Datuk Eddy Chen said they were in the process of referring the case to the Federal Court and would also seek a stay of execution.

“I believe some of the developers are holding back the compensation pending a final decision,” he added.