RM3b to revive abandoned housing projects
Sunday Star 26/6/2005
PENANG: It would cost the Government RM3bil to revive 172 abandoned
housing projects in the country.
Prime Minister Datuk Seri Abdullah Ahmad Badawi said the money need
not be spent if developers had fulfilled their responsibility and
completed the projects consisting 32,000 units.
“The money could be used for other projects. But if we did not give
the money to revive the abandoned projects, the buyers will get
angry with us,” he said yesterday at a ceremony to give out keys to
unit owners in Taman Sri Bayu, an abandoned flats project revived by
the Government.
Also present were Housing and Local Government Minister Datuk Seri
Ong Ka Ting and Chief Minister Tan Sri Dr Koh Tsu Koon.
HOME SWEET HOME: Abdullah looking at the model of a house in
Bayan Lepas, Penang yesterday. He is flanked by Ong and Syarikat
Perumahan Negara Bhd executive chairman Tengku Adnan Tengku Mansor.
The Prime Minister said Syarikat Perumahan Negara
Bhd, a wholly-owned subsidiary of the Ministry of Finance
Incorporated, had completed 12,000 of the 32,000 abandoned units.
This included the Taman Sri Bayu flats project that has 730 units.
Abdullah reminded developers to honour their contracts to complete
housing projects irrespective of problems.
“Facing losses is a risk in business.”
He reiterated that the Government would blacklist companies and
contractors who failed to complete projects, such as the project to
build houses and offices for the police of which RM25bil had been
allocated.
“Anyone else involved in these companies will also be blacklisted. I
do not want to see the police project getting abandoned,” he said.
Abdullah said there were 60,000 contractors in the country, and if
some of them were unable to carry out projects, it was better for
them to deregister themselves than be blacklisted.
He also urged those occupying government offices and houses to keep
them in good condition, adding that the Government had to fork out
RM500mil to repair damages.
Ong said the Housing Development (Control and Licensing) Act was
being revised to further protect housebuyers.
He said ministry was taking steps to amend the Act again to overcome
weaknesses that still existed. The Act was last amended in 2002.
The ministry, he added, was also tightening enforcement to protect
housebuyers and solve the problem of abandoned housing projects.
“Irresponsible developers will be charged in court,” he said.
He also said the ministry had tightened the procedures in issuing
housing development licences, adding that the financial capability
of the companies would be closely scrutinised.
He cited the 1997-98 economic crisis as the biggest factor that
caused many projects to be abandoned, as many developers were unable
to repay loans due to high interest rates.
“Other factors included disagreements between the developer and
landowner, poor management, and squatter problems,” Ong added. |
