Increased penalties for errant developers

NST 17/02/2000 By M.K. Megan

Kuala Lumpur, Wed - The Housing and Local Government Ministry plans to increase penalties for errant housing developers who fail to keep it informed of project progress every six months.

The Ministry's latest move to rein in developers, however, comes from a position of weakness - it has not taken action against a single developer for infringing the requirement.

Under the Housing Developers (Control and Licensing) Act 1966 (Act 118) Regulations 1989 and 1991, developers who breach Section 19 (C) (c), can be fined not more than RM10,000 or jailed a maximum of three years or both and fined RM500 daily for every day the offence continues to be committed upon conviction.

Its Minister Ong Ka Ting told a Press conference that very few developers had submitted reports in the past and no action had been taken against those who had not done so.

"They (developers) have been taking the requirement for granted. I am going to personally pull out developers' reports at random from our ministry to monitor the progress of their projects," he said.

Ong, however, did not specify the quantum of increase but said it would be significant.

He said the ministry had to monitor the progress of projects to ascertain if they were proceeding smoothly or could meet the scheduled completion date.

"We will also know if the project will be delayed or abandoned. There are developers who are not competent and have to be checked."

Ong said the ministry was undertaking a comprehensive revamp of the Housing Developers (Control and Licensing) Act to make it fair to both developers and house buyers.

"We are about half-way through. It would take some time before the revamp is ready. We are not making cosmetic changes but undertaking a total and comprehensive change."

He said the ministry needed feedback from several quarters including Housing Developers Association, house buyers associations, consumer associations and Non-Governmental Organisations on the matter.

The Act, which he felt protected developers more than house buyers, was last reviewed 10 years ago.

"We want to make sure the amended Act is balanced and looks after the interests of both parties," he said. " It does not mean the Act will restrict the progress of developers."

In the past, the ministry, mostly under former minister Datuk Dr Ting Chew Peh, had promised action on issues including Certificates of Fitness for new houses within two weeks, ensuring swimming pools at condominiums were safe for swimmers and installation of water-conserving toilets in new buildings. However, little has been done to implement these proposals.

Earlier, Ong said from April 1, the ministry will approve licenses and permits for developers within a month.

"If  before it  took them more than two months to know the results of their application, we are going to process applications within a month if they are complete."

Ong said only 20 to 30 per cent of applications received were complete.

"The officers at the counters would be well-versed in the subject to advise applicants. We will not be using counter clerks who do not have any knowledge of the subject.

"This will reduce the waiting period on both sides (the ministry and applicant). But this does not mean we are loosening the regulations for developers but it is a way of improving efficiency. We are not compromising the interest of house buyers."