Lawmakers seeking justice for unwitting housebuyers

TWO lawmakers, whose constituents are affected by the breach of bumiputra lots quota, are calling for accountability from the Selangor government.

They also want the focus shifted from innocent housebuyers to the company directors of property companies involved.

Both lawmakers have been approached by constituents who are being told to pay penalty fees after they were sold residential units meant for bumiputra.

“My stand is clear. The buyers are innocent and should not be paying for the charge as they did not benefit from the sale.

“It is unfair to punish them,” said Selayang MP William Leong.

He emphasised that the state government and the Selangor Housing and Property Board (LPHS) should be going after the company instead.

“Since the company (for the Rawang project) is in liquidation, the correct way is to file a proof of debt and go after the directors.

Leong says the authorities should go after company directors instead of innocent buyers.

“I have written to LPHS’ executive director Datuk Dr Juhari Ahmad, seeking a meeting to discuss the issue.

“We should be fair to the buyers who are innocent, as well as take action including criminal charges if necessary against the directors.

“We need justice for the buyers and I am confident the Selangor government will be able to resolve this in a fair manner,” said Leong.

Subang Jaya assemblyman Michelle Ng suggested implementing a better reporting mechanism and requiring developers to provide bank guarantees to prevent cases of overselling bumiputra lots.

She said conditions like these would bring much-needed accountability and transparency into the system.

“What we have now is a loose end. When a developer allocates units designated for the bumiputra quota, it is not communicated to LPHS.

“But these bumiputra units can be swapped around during the sale process.

“A weekly reporting system, where developers are required to update LPHS on the number of bumiputra and non-bumiputra units sold, will make it more transparent and ensure that the housing board has updated information,” Ng reasoned.

Ng suggests implementing a better reporting mechanism for developers.

While it may not be a popular idea with developers, she also recommends that a bank guarantee be paid to the state via LPHS to ensure that bumiputra requirements are fulfilled.

“Should developers fail to meet these requirements, the bank guarantee can be forfeited,” she said, adding that the exact amount would need to be studied.

Ng said existing laws could be amended to make decision-makers in companies personally liable should cases like these crop up.

“This is so that no one can escape culpability by winding down companies.”

She said there was currently one case of overselling of bumiputra lots in her constituency.

She had brought the matter up several times during the state assembly sitting, most recently in March.

Then Selangor housing, urban well-being and entrepreneur development committee chairman Rodziah Ismail said the state government was evaluating a mechanism to curb the violation of the bumiputra quota by developers.

She said failure to comply or overselling of bumiputra lots to others would result in a suspension of the “blanket consent” or “blanket approval” process.

Developers could face stricter penalties, including the blacklisting of board members and restrictions on undertaking future development projects in Selangor.

To initiate this process, discussions would be held with relevant departments, including Selangor Land and Mines Office (PTGS), State Legal Advisor’s Office and National House Buyers Association. — By BAVANI M and SHALINI RAVINDRAN