Errant Developers To Face The Music For Breach Of Contract

Bernama 8/2/2006

SHAH ALAM, Feb 8 (Bernama) -- Private housing developers who fail to honour the sale and purchase agreements entered into with house buyers in Selangor will face police action as they have committed commercial crime, Selangor Menteri Besar Datuk Seri Dr Mohamad Khir Toyo said.

He said police reports would be lodged by representatives of the Selangor Housing and Property Authority (LPHS), people's representatives and the affected house buyers.

He said the objective was to deter and discipline irresponsible developers.

"It appears that such cases are on the rise lately. We regret the attitude of developers who cause difficulties for the people and house buyers," he told a press conference after chairing a weekly exco meeting, here Wednesday.

Dr Mohamad Khir said irresponsible developers who did not provide infrastructure facilities as stipulated in the agreement, had caused the people to express their anger at the government as they were occupying houses which were not given the certificates of fitness (CFs).

Among the breach of contract cases identified were in Kundang and Rinching, he said.

Dr Mohamad Khir said he had discussed with the Royal Malaysia Police (PDRM) on the measure and the latter had indicated their preparedness to conduct investigations if police reports were lodged.

He also said there were developers who embarked on projects using proxies, making it difficult for the authorities to trace and to take action.

To avoid from becoming victims, the Menteri Besar advised house buyers to purchase their units from established developers.

To a question on privatisation, Dr Mohamad Khir said the state government was not planning to privatise other state government projects apart from the three privatised river projects in Selangor.

Recently, chairman of the pro-tem state committee on infrastructure and public utilities Datuk Abdul Fatah Iskandar said the management of three main rivers in Selangor --Selangor, Langat and Klang Rivers -- will be privatised soon in a bid to conserve the rivers.

The three companies which had been identified by the state government to manage the rivers would be allowed to collect revenue and to set up well- contained development projects at the rivers to generate income.

-- BERNAMA