CM: Need to protect genuine developers
The Star 25/9/2005

PENANG: Errant housing developers should be dealt with seriously by the Government, especially those who collude with architects and engineers to shortchange buyers, Chief Minister Tan Sri Dr Koh Tsu Koon said.

He said there had been cases where architects reportedly signed for 100% completion of a housing project when the project was only about 70% to 80% completed.

“We have raised such matters with the Housing and Local Government Ministry, which referred these cases to the National Housing Board for action.

“The culprits are usually fined a small amount and, in most cases, such action would only lead to temporary suspension of the developer’s licence.

“This is not correct because it is a case of criminal breach of trust,” he said when opening The Star Property & Home Fair 2004 at the Penang International Sports Arena (Pisa) here yesterday.

Dr Koh said although there might be only a few rotten apples among the professionals, they should be dealt with seriously to protect the image of other professionals.

“There may have been some cases of genuine hardship faced by the developers, especially during the economic slowdown from 1997. So, we need a specific mechanism with certain procedures at the ministry level to distinguish between the genuine cases and those who had abused the law.

“Some may have abused the developer’s account, where the money and instalment payment made by housebuyers that is kept and is meant for the use of the project, is not used for that purpose,” he said.

Dr Koh also suggested further amendments to the Housing Development (Control and Licensing) (Amendment) Act 2001, to include provisions for housebuyers to form a committee right from the beginning, when they sign up for housing units.

“The developer should inform all housebuyers who the other buyers are, and they should be allowed to contact each other through the committee to protect their rights.”

Earlier, Star Publications (M) Bhd regional director Datuk Seri Kamal Hashim echoed Prime Minister Datuk Seri Abdullah Ahmad Badawi’s call for developers to be more responsible and not to take the public for granted.

He also said that making the right choice in buying a property would largely depend on knowing the market.

The three-day fair, which ends tomorrow, is open from 11am to 9pm daily. There are more than 100 exhibitors taking up more than 200 booths.

It is organised for the second year by The Star, with Henry Butcher as the technical adviser for the forums and talks.