S’gor govt urged to create reporting system to avoid scams in selling bumi lots

SHAH ALAM: A Selangor government backbencher today proposed the creation of a housing sales reporting system between the Selangor Housing and Property Board (LPHS) and housing developers, which to be updated weekly by the developers, to avoid scams in selling Bumiputra lots to non-Bumiputras.

Michelle Ng Mei Sze (PH-Subang Jaya) said the system practised in Singapore needs to be adopted as there had been reports alleging that non-Bumiputera buyers who purchased Bumiputera lots had to pay penalties because they were deceived by developers who did not disclose the true status of the lots sold to them.

“The state government has to look into the existing system and make some improvements to protect housebuyers,” she said when debating the Supply Enactment Bill at the Selangor State Assembly sitting here, reports BK.

She said the reports should include information such as the price of each unit, units with Bumiputra status, lots that have been sold, and details of the buyers of those lots to avoid issues of selling Bumiputra lots to non-Bumiputras.

Apart from that, the LPHS should require developers to provide a bank guarantee that can be forfeited if the developer sells Bumiputra lots to non-Bumiputras without proper authorisation.

She said laws should also be amended to allow the state government to claim damages from the directors of the developing companies or the parent companies.

She also proposed that developers, their parent companies, and the directors of companies found selling Bumiputra lots to non-Bumiputras be blacklisted, and all development projects associated with them not be approved by any local authorities.

StarMetro had, on Nov 6, in an exclusive report “Firms breach bumi-housing quota, buyers penalised”, highlighted the plights of homeowners in Selangor who had unknowingly bought bumiputra units and are now saddled with penalty fees amounting to millions as the developers have gone into liquidation.