Gov't fully responsible for abandoned housing projects
Dr Mohd Rafick Khan Abd Rahman
Dear Senator T Murugiah,
1. I refer to a recent media report where it was quoted that you said, 'The people should know that it (the problem of abandoned housing projects) has nothing to do with the government as it is between the buyers and the developers'.
2. As the pro-tem president of Abandoned Property Owners Association of Malaysia (Victims), we beg to differ on the position taken by you in this matter. In our opinion, this is a matter which is open for legal deliberation and interpretation. Our own position in this matter is that the federal government is fully responsible and accountable when a housing project is delayed or failed completely.
3. Our position in this matter is supported by the argument that the federal government is fully responsible in view of its deliberate action in collaboration ( a better word would be in cahoots) with Housing Developers via Rehda in creating a lopsided Housing Development Act ( ie, Act 118) which governs the housing development in Peninsular Malaysia.
4. The Act forced the purchasers and developers to sign a standard SPA as listed under either schedule G or schedule H of Act 118 whenever they buy a property from a developer. The law that our government creates forces purchasers to follow this agreement strictly without any deviation.
Developers often tell purchasers that, they cannot allow any deviation from the schedule as they too will contravene the Act. Despite having a standard agreement, purchasers have to pay a huge amount of money to lawyers to execute a sale and purchase process.
5. The sad thing is, the agreement that is signed gives the ordinary man very little rights, plenty of obligations and almost a freehand to the dictates of a property development. When a project is delayed; there is no avenue for the small, ordinary man to take action against the developer.
He has to pay every time he is billed failing which they risk of losing part of their payment if they do not pay. Worse still, LAD cannot be computed and demanded until the project is completed with VP. The Housing tribunal is also not able to provide any assistance until the VP is given.
6. As a result of the Act that the Malaysian government creates, house purchasers are openly abused by developers. Rehda argues that under the present arrangement the system works and only a small number of projects are abandoned.
As at Febuary 2010, KPKT statistics shows that there are 252,000 house-buyers affected and Rehda says this is small. From a financial point, this is a RM37.8 billion problem. If indeed it is true than they should not worry and object and should agree to amend the Act to give the small man more rights than the developer.
7. In a nutshell, the suffering of 252,000 house buyers in this country is a problem that is deliberately created by the government. Our position can be further supported by many parts of the Act. Among others, the lack of action of the minister under section 11 and 12.
Despite that, the government is still dragging its feet to give the ordinary man equitable rights against the mighty developers. The government is supposed to protect the interest of the weak and in this case, it has failed to do so. For this, our position is that the government is responsible from a moral and legal stand point.
The writer is president, Persatuan Pemilik Hartanah Terbengkalai Malaysia (Victims).
Dear Senator T Murugiah,
1. I refer to a recent media report where it was quoted that you said, 'The people should know that it (the problem of abandoned housing projects) has nothing to do with the government as it is between the buyers and the developers'.
2. As the pro-tem president of Abandoned Property Owners Association of Malaysia (Victims), we beg to differ on the position taken by you in this matter. In our opinion, this is a matter which is open for legal deliberation and interpretation. Our own position in this matter is that the federal government is fully responsible and accountable when a housing project is delayed or failed completely.
3. Our position in this matter is supported by the argument that the federal government is fully responsible in view of its deliberate action in collaboration ( a better word would be in cahoots) with Housing Developers via Rehda in creating a lopsided Housing Development Act ( ie, Act 118) which governs the housing development in Peninsular Malaysia.
4. The Act forced the purchasers and developers to sign a standard SPA as listed under either schedule G or schedule H of Act 118 whenever they buy a property from a developer. The law that our government creates forces purchasers to follow this agreement strictly without any deviation.
Developers often tell purchasers that, they cannot allow any deviation from the schedule as they too will contravene the Act. Despite having a standard agreement, purchasers have to pay a huge amount of money to lawyers to execute a sale and purchase process.
5. The sad thing is, the agreement that is signed gives the ordinary man very little rights, plenty of obligations and almost a freehand to the dictates of a property development. When a project is delayed; there is no avenue for the small, ordinary man to take action against the developer.
He has to pay every time he is billed failing which they risk of losing part of their payment if they do not pay. Worse still, LAD cannot be computed and demanded until the project is completed with VP. The Housing tribunal is also not able to provide any assistance until the VP is given.
6. As a result of the Act that the Malaysian government creates, house purchasers are openly abused by developers. Rehda argues that under the present arrangement the system works and only a small number of projects are abandoned.
As at Febuary 2010, KPKT statistics shows that there are 252,000 house-buyers affected and Rehda says this is small. From a financial point, this is a RM37.8 billion problem. If indeed it is true than they should not worry and object and should agree to amend the Act to give the small man more rights than the developer.
7. In a nutshell, the suffering of 252,000 house buyers in this country is a problem that is deliberately created by the government. Our position can be further supported by many parts of the Act. Among others, the lack of action of the minister under section 11 and 12.
Despite that, the government is still dragging its feet to give the ordinary man equitable rights against the mighty developers. The government is supposed to protect the interest of the weak and in this case, it has failed to do so. For this, our position is that the government is responsible from a moral and legal stand point.
The writer is president, Persatuan Pemilik Hartanah Terbengkalai Malaysia (Victims).
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