Right to act against developers

From: http://thestar.com.my/news/story.asp?file=/2011/11/25/focus/9972925&sec=focus (Accessed 25 November 2011)

Friday November 25, 2011

FINALLY, we can see the light at the end of the tunnel. The Housing Ministry is getting the amendments to the Housing Development Act tabled at the present sitting of Parliament.

As at Nov 15, the Housing Minister reported that 4,703 directors of housing development companies and 1,308 developers had been blacklisted.

Multiplied by the hundreds or thousands of houses per project, it means tens of thousands of Malaysians are suffering in silence at not getting their dream homes.

Many have taken bank loans for their uncompleted houses and face the risk of being declared bankrupt.

Although this move is laudable, I tend to agree with Chang Kim Loong, secretary of the National Housebuyers Association, that we must not let “the old criminals” get away scot-free.

Blacklisting is not enough! They must be penalised for creating untold hardship for genuine buyers.

If we only charge new developers with effect from March next year, we are in fact giving a new lease of life to some crooks who have abandoned their projects.

The Government must ensure that no “old criminal” is allowed to start new projects under different names or under the names of other members of the family.

They must be made to pay for their crimes and for the untold suffering they have caused.

I booked a house in Bandar Baru Salak Tinggi, Sepang, Selangor in 1998 and the project has been abandoned.

My pleas have fallen on deaf ears.

Even the accounting firm that has been appointed liquidators is dragging its feet on the matter and refuses to reply to my queries.

I congratulate the Housing Ministry for taking action to rid the country of “criminals’ in the housing industry.

FRUSTRATED VICTIM,

Seremban.

3 responses to “Right to act against developers

  1. Saya berpandangan, langkah Kementerian Perumahan dan Kerajaan Tempatan itu baik. Namun, ini bukan boleh menjamin kepentingan para pembeli terus terpelihara. Langkah yang diambil itu hanya bersifat ‘curative’ bukan ‘preventive’. Selanjutnya, langkah ini memerlukan KPKT menyediakan pasukan penguatkuasaan yang mencukup dan efisien bagi memastikan penguatkuasaan undang-undang itu dapat dilaksanakan sepenuhnya.

    Pada saya, kerajaan perlu memulakan langkah yang bersifat ‘preventive’ dalam menangani masalah projek perumahan terbengkalai bukan ‘curative’.

  2. There is an entire chain of failures that have led to this disaster. First and foremost it is the silence in relevant aspects of the legislation that have allowed crooked developers to abuse the system and get away with it scott free.

    Secondly it is the fault and the failure of liquidators who in most cases appear incompetent or deliberately slow gouging their fees from whats left of the corpus of the companies that controlled these failed developments.

    Thirdly the absence of a regulatory regime to supervise the industry or a self governing body capable of proper governance and supervision of regulation that is at the core of this failure.

    I could go on. The question here to be answered is this. Who will pay for the loans taken out by would be buyers on properties that do not exist not having been completed. And whose job would it have been to oversee those payments to contractors and developers on unfinished projects?

    My view in at last some cases is that banks and lawyers had the role of trustee for the interests of the would be buyers unless those buyers took out loans and paid developers directly or through their lawyers. In such situations their lawyer have some degree of culpability that must be addressed.

  3. Well, I think the main reason that abandonment of housing projects still on the rise is due to the lack of political will of the government to adopt full build then sell system of housing delivery. Other reasons are ancillary only, although they may also aggravate the inherent problem.

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