Housing Developer "Datuk" Held For Not Paying Contractors

Bernama 15/4/2006

IPOH, April 15 (Bernama) -- A housing developer with the title of "Datuk" is being held under remand until Sunday to facilitate police investigation for allegedly not returning deposits and making payment involving about RM1 million to more than 20 contractors.

The 53-year-old man was detained last Wednesday after eight contractors lodged a police report alleging that he had failed to return their deposits and pay them for work done, Perak CID (Commercial Crimes) chief Supt Mazlan Mansur said Saturday.

The man had allegedly collected between RM20,000 and RM50,000 from each of the more than 20 contractors he had placed on a panel to undertake contracts to build houses under the "Rancangan Perumahan Tersusun" housing programme in Perak.

A representative of the contractors, Mohd Yusof Mohd Taib, 47, said he and the other contractors lodged the police report after cheques given to them on several occasions were not honoured by the bank for lack of money or closure of account.

"We demanded the return of our deposits after the developer failed to pay us for over a year. He had sought postponement of payment several times and when he finally gave us cheques, they bounced," he claimed.

Mohd Yusof said the developer had collected the deposits on the understanding that the work had to be completed satisfactorily according to specifications or the money would be forfeited accordingly.

"The developer claimed that the Perak government had appointed his company to undertake the housing programme and he handled all the relevant loans and construction," he said.

-- BERNAMA