Ka Ting: Ministry will not compromise

13/08/2004 The Sun By Liew-Ann Phang

Kuala Lumpur: The Local Government and Housing Ministry will not compromise with developers in terms of withdrawal of monies from accounts and delivery of products.

Developers will soon be compelled to submit a half-yearly report on the progress of their project and those who fail to do so or submit false information will be convicted of an offence.

Minister Datuk Seri Ong Ka Ting said yesterday developers will also have to ensure that their project meets all the specifications as agreed upon in the sale and purchase agreement and will deliver the houses on time.

Ong said after the amendment to the Housing Developer Act since early December 2001, the ministry is stringently monitoring the withdrawals from developer's accounts.

"In the past, there were withdrawals of up to 70% from the developers' accounts even when there was only 30-40% construction. The ministry will not compromise on the part of its regulation and enforcement," said Ong, adding that the ministry is "trying to digest the old problems" which cropped up before the amendment.

"Once that is done, we will be able to move forward faster and new projects will be better regulated and monitored," he said during his keynote address at the National Housing and Property Summit.

Adding that he clarified the "Build then Sell" concept suggestion by the prime minister, Ong said Datuk Seri Abdullah Ahmad Badawi had meant that the interest of the house buyers should be safe-guarded.

"There are many house buyers who pay for the property but do not come through. He (PM) is very concerned about this and we want the houses or developer to be more tangible for the buyers.

"We are looking at different ideas and concepts and we will moot something suitable for Malaysians," he said.

Asked on how soon the mechanism will be implemented, Ong said brainstorming sessions are still being carried out and the ministry is seriously taking steps to replace it with a better system.

The one-stop centre will continue to function until the government comes up with the a proper mechanism for the certificate of the completion of the project.

"We're looking at giving heavier responsibility to the professionals, especially architects who design and do the submissions to the local authorities.

"We want an effective way of check and balance and to regulate the professionals and prevent them from acting unprofessionally," he said.

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