Builders gifted with licence to make killing

03/11/2003 The Sun By Angie C.K.Ng, Kuala Lumpur

I fully agree with Datuk Seri Yuen Yuet Leng's voice for the masses who have been cheated by unscrupulous developers (Letters, Oct 27).

Sad to say many of these developers have no problems selling their new project launches, owing to beautiful artist's impressions, convincing promises, etc.

Some staunchly believe that developers' units under construction are always far below market prices: I just wonder that they haven't read the newspapers where  house owners/real estate agents advertise completed units for sale below the developer's price.

As regards questions which house buyers encounter, why are the Housing and Local Government Ministry and the local authorities being asked to resolve the issues?

The two authorities come into the housing development picture only at the final stage of approval, especially the ministry, which grants the licence to the developer.

When a developer submits an application for state land alienation or land use conversion and subdivision, the application is made to the relevant Land Office which acts as a distributor by forwarding the same to all the technical departments and approving authorities concerned, including the local council - but not the ministry.

The local council is simply one of the approving authorities, whose decision can be overruled by the state executive councillor.

The ministry can only issue a housing developer's licence after the building plan is approved by the local council. and the developer can only apply for building approval after the conversion and/or subdivision is approved.

Issuing a developer's licence to the applicant seems to be a natural process, rather than a screening exercise for errant developers of past abandoned projects.

For example, who doesn't know who the developer behind Lembah Beringin is?

Yet the parent company company's subsidiaries have many projects. In fact, new projects have been launched and are still selling well.