At the Dewan Rakyat yesterday: Developers to get bigger fines in move to protect buyers
NST 13/12/2006 Reports by V. Vasudevan and Anis Ibrahim

HEAVIER penalties are in store for housing developers who break the law.

To provide greater protection for home buyers under the Housing Development (Control and Licensing) (Amendment) Bill, maximum thresholds for some fines have become minimum amounts.

For instance, if convicted, the maximum fine for developers who fail to comply with awards by the Housebuyers Claims Tribunal is now RM10,000 when the previous limit was RM5,000.

In cases of continuing offences, in addition to the fine, the developer will have to pay a maximum of RM1,000 per day or part of a day from the date of conviction.

Similarly, developers who make unauthorised withdrawals from bank accounts deposited with purchase monies for properties under the developer will be fined a minimum of RM250,000 instead of the previous threshold of RM50,000.

Housing and Local Government Minister Datuk Seri Ong Ka Ting said the government had the interests of the public in mind.

"The Act contains fines which are not high enough and, therefore, does not deter housing developers.

"My ministry has decided that higher fines are necessary to protect home buyers," he said in his summing up of the debates on the Bill yesterday.

Karpal Singh (DAP-Bukit Jelutong) said the new section, 3A, did not allow ministerial decisions on a specific form of accommodation under the Act to be questioned in court.

"Does this mean that the the minister’s decision is not subject to judicial review?" he said.

Ong said section 3A was inserted to prevent housing developers from delaying matters in court.

"There have been cases of housing developers questioning the jurisdiction of the Housebuyers Claims Tribunal.

"This led to delays and reduced the effectiveness of the tribunal’s award in favour of the claimant. We want to put a stop to that," said Ong.

The Bill was passed.