The State Government has directed the Penang Municipal Council to issue Certificates of Fitness (CF) for phase one of the state government low-cost housing project in Teluk Kumbar which was ready in July last year.

Deputy Chief Minister Datuk Seri Mohd Shariff Omar said buyers of the low-cost units of the Taman Baru Teluk Kumbar project should be allowed to move into their two-bedroom walk-up flats by the middle of next month.

He said the cause of the delay in the issuance of the CF was land matters involving the sub-division of the open space where the site office was constructed.

"However the state government had approved the sub-division and there is no reason for the council building department to delay the issuance of the CF.

"About 4,000 people have been made homeless because of the delay. Buat apa ada rumah yang cantik tapi tak bolih duduk? (What's the point of having a nice home when you are unable to move in?" he told reporters after visiting the project site yesterday.

He said Deputy Prime Minister Datuk Seri Abdullah Ahmad Badawi was expected to be here for the handing over ceremony of the house keys to the buyers.

The RM40mil two-phase mixed development project was developed by the Penang Regional Development Authority (Perda) and private developer KMPC Sdn Bhd, a subsidiary of AM-EL Group of Companies.

Phase one of the project costing RM30mil comprises 840 units of RM25,000 lowcost flats and 59 commercial units. Phase two of the project costing RM40mil comprises low-medium cost units was expected to be ready by next year.

Mohd Shariff who is also Perda chairman, ordered the project developer to carry out some "touch-ups" to the units which were vandalised over the one-year period to facilitate the issuance of CF.

AM-EL Group of Companies's executive chairman Micheal K.C. Low said almost all the 840 lowcost flats had been sold.

Accompanying Mohd Shariff were Teluk Kumbar assemblyman Syed Amiruddin Syed Ahmad and Perda general manager Wan Ibrahim Wan Daud.