Speaking to FMT, HBA secretary-general Chang Kim Loong, said there are several provisos in the Housing Development (Control & Licensing) Act 1966 (HDA) that protect interests of buyers in terms of project delivery by developers.
He specifically cited Sections 7, 10, 11 and 12 of the HDA. Section 7 states that developers must submit a quarterly or biannual report to the housing ministry once every four or six months, he noted.
“This sworn declaration contains complete information that would give an insight on the status of sales, the progress in construction and the company’s cash flow so as to determine whether the project is progressing well.”
Chang said symptoms of a failing housing project could be diagnosed early if this process was “constantly and effectively” monitored and policed by the minister and those under his charge.
“The ministry cannot be just doing a ‘rod and reel’ system of monitoring, policing after a project has gone rogue. The monitoring programme must be organised effectively and efficiently,” he said.
Chang said a good law remains only on paper and as an ornament if it is not enforced. Early action can help tackle cases of abandoned projects which have an adverse financial impact on innocent buyers, he stressed.
“A lack of enforcement and monitoring weakens the provisions of the Act. Lets’ face it – there is no solution to abandonment. We just have to prevent it from happening.”
Chang was commenting on a High Court decision on Monday to set aside the move by the Urban Wellbeing, Housing and Local Government Ministry under the tenure of its former minister Abdul Rahman Dahlan to give a 12-month extension to a developer to complete its project.
He also pointed to Section 10 of the HDA, which gives powers to the minister to order an investigation on any offence under the act, or on relevant affairs and accounts of a developer if he has reason to believe they are detrimental to the interests of house buyers.
“Under Section 11 of the HDA, the minister is empowered to safeguard the interests of house buyers when licensed housing developers are unable to meet their obligations,” he said.
“Basically, the minister and his ministry have wide ranging powers to intervene and salvage a ‘sick project’ and to offer ‘treatment to provide cure’.
Rahman: No abuse of power over extension granted to developer