Almost completed housing project halted
02/10/2005 The Star

THE Government had to stop a housing project for squatter relocation after it realised that the houses were being built on slime even though more than 85% was completed.

This cost the taxpayers RM1.06mil, which had been paid to the contractor, National Housing Corporation Berhad (SPNB).

The project which initially cost RM1.26mil was halted after the houses, priced at RM35,000 each, were found with serious damages and with soil depression.

Geoscience and Mineral Department had verified that the whole 10-acre KTM Kampar building site was sitting on slime earth (near a tin mine).

Last year, the Finance Ministry ordered SPNB's contract to be terminated and the houses to be demolished with the costs to be borne by taxpayers, but no explanation was given.

Out of the 13 housing projects audited, 10 have been completed, two are still under construction and one abandoned.

But all never met their deadline – some having been delayed by two-and-a-half months and others by up to almost four years.