Developer gets state ultimatum
The Star 17/08/1999 By Derrick Vinesh
The state government has ordered the developer of
Bandar Prai Jaya in Butterworth to come up with a concrete solution
to its low and low medium-cost housing woes within two weeks.
Chief Minister Tan Sri Dr Koh Tsu Koon said Penas Sayang Development
Sdn Bhd was issued the ultimatum yesterday, for failure to deliver
the houses to some 350 buyers for more than a year.
"The developer has pledged to complete the low-cost housing units by
end of October and the low medium-cost houses by December," he said
after chairing an hour-long meeting with affected housebuyers and
the developer at the Penang Development Corporation, Bayan Baru.
He said Penas Sayang had agreed to inform the state of possible
compromises and solutions within the stipulated period.
Last Friday, residents of the former Kampung Teluk lodged a police
report alleging that the developer had stopped paying rental for
their temporary housing as part compensation to vacate the area in
May last year.
The developer recently issued them notices to pay up balance sums of
between RM1,000 and RM2,500 each for their new houses within 14 days
or risk losing their units.
The residents' representative S. Somasundram had said that the
developer had agreed to pay their rental until the project was
completed, which was initially scheduled for August last year.
As for the rental arrears, Dr Koh said he had asked the developer to
consider seriously how much of the arrears the company could afford
to pay.
"Previous efforts to mediate in the matter had only partially
resolved issues, but the most thorny one is the arrears in rental,
which the developer had only been paying for two years till last
May," he said.
He also said he would ask the Seberang Prai Municipal Council to
expedite the issuance of occupational certificates (OC) once the
units were completed.
Earlier, Dr Koh met up with 36 participants from 16 media
organisations who were on a study trip of development projects in
the northern zone.
The fact finding trip to Perlis, Kedah, Penang and Perak, from Aug
12 to 19, is organised by the Information Ministry. |
