Legal aid for buyers of abandoned projects

The Star 1/12/2005

SHAH ALAM: The state government has formed a legal aid panel to give free advice to 18,000 housebuyers affected by abandoned projects in Selangor.

“The panel, under the Selangor Housing and Property Board, will give free advice to those earning RM5,000 and below a month,” said Mentri Besar Datuk Seri Dr Mohamad Khir Toyo.

“Our aim is to help those who bought low-cost houses and mid-range properties. Those who bought commercial lots can also get free legal aid,” he told reporters after the weekly state executive council meeting here yesterday.

He said there were 56 abandoned projects in Selangor – 32 housing projects, 18 commercial projects and an industrial project.

The mentri besar said most of the abandoned projects were in Selayang, Gombak, Petaling Jaya and Kajang and that they had been left idle between five and 10 years.

Dr Khir added: “The projects were abandoned because the developers ran out of money or lacked expertise. Some rolled their money between one project and another, leading to financial mismanagement.”

He said the companies connected with the abandoned projects would not be allowed to take up any more property projects in Selangor.

He added that the state government had informed Housing and Local Government Minister Datuk Seri Ong Ka Ting of its decision.

“We only want credible developers who could complete their projects, not those who would leave buyers in the lurch,” he said.