Buyers unhappy with proposal
The Star 8/10/2005 By PRISCILLA DIELENBERG
THE developer of the stalled Mutiara Perdana (Phase II) low-cost flats in
Bayan Lepas, Penang, is asking all the 650 purchasers to drop their demand
for compensation for late delivery.
In return, the developer will not ask for the additional RM1,100 per unit
when it hands over the keys to the buyers.
PPH Resorts (Pg) Sdn Bhd general manager Azmi Yusoff said the RM1,100 per
unit was meant to be channelled to the sinking fund and various charges such
as maintenance fees and quit rent.
This proposal, which was brought up for the second time at a meeting with
buyers at the project site recently, was met with dissatisfaction by most of
those present although 350 purchasers had already agreed to it.
It is learnt that out of the 200-odd buyers who attended the meeting, only
nine agreed to forgo their compensation while 149 refused. The others did
not return their forms.
Clerk N. Ruslan, 30, said her husband had bought a unit in late 1999 and it
was supposed to be completed by early 2003.
“We want our compensation. Who doesn't? But give us our homes first,” she
Businessman Jamhari Idrus, 41, said he had suffered long enough.
“If the developer cannot afford to pay us like it claims, what is the point
of dragging on the matter?
“If we agree not to seek compensation, maybe the whole thing will get
settled soon. Besides, I have already spent so much, I don't want to pay
another RM1,100,” he said.
Mutiara Perdana (Phase II) Purchasers Action Committee chairman Abdul Razak
Ismail said that if the developer could not pay compensation in terms of
cash, it could provide fixtures and facilities such as a children's
playground or deduct the equivalent in loan balance from the bank.
He estimated the liquidated ascertained damages (LAD) for late delivery at
between RM10,000 and RM15,000 per unit, which would come to between RM6.5mil
and RM9.7mil for the project.
However, Azmi said he estimated the LAD to be about RM8,000 per unit, which
would come to about RM5.2mil.
Azmi said his company's financial situation was dire and he was in the midst
of negotiating with another developer to complete the project.
State Housing, Culture, Arts and Heritage Committee chairman Syed Amerruddin
Syed Ahmad, who was present at the meeting, said he would arrange a meeting
between the developer and the buyers' representatives at his office soon to
try and reach a solution.
On Thursday night, Abdul Razak lodged a report at the Bayan Lepas police
station claiming that he represented the purchasers and they had all been
cheated by the developer.