PM wants abandoned projects
26/06/2005 Daily Express
Penang: Datuk Seri Abdullah Ahmad Badawi wants all abandoned projects that
can be salvaged to be revived immediately so that there are no more "ailing"
projects in the country.
The Prime Minister said "ailing" projects were a crying shame and the
problem must be overcome immediately with the co-operation of all parties
including the state governments and the Housing and Local Government
He said problems would arise if the state governments did not support the
Federal Government's efforts to revive abandoned projects through Syarikat
Perumahan Negara Berhad (SPNB).
He also said that due to the seriousness of the problem of abandoned
projects, the Government would blacklist developers, contractors and
individuals who caused their projects to be abandoned.
"There are too many contractors now, over 60,000 companies. If they cannot
implement the project, it's better to blacklist them. They have breached the
trust placed in them by not completing the projects," he said.
Abdullah said if the Government did not go after these errant developers and
individuals, the disease would fester in the construction industry, much to
the detriment of the Government, because it would have to allocate a big sum
to revive the abandoned projects.
He said tales of abandoned projects, especially housing projects were
heartbreaking. The house buyers had paid up but the developers were
irresponsible and untrustworthy in discharging their responsibilities.
He said developers' excuses about facing financial problems and losses for
not completing projects could not be accepted because all businesses had
their ups and downs, profits and losses.
He said the Government had had to allocate RM3 billion to revive ailing and
abandoned projects when such a large sum should have gone towards now
projects to build facilities for the people.
"For no apparent reason, the Government had had to stump up RM3 billion to
revive sick projects. This large sum could have been used to build new
projects. This is a loss to the Government...but if the Government doesn't
help, the people will make noise," he said.
Abdullah said so far, SPNB, a subsidiary of MOF Inc, had restored about
12,000 abandoned house and 20,000 more needed repairs.- Bernama