AG Report: Johor lacks efficiency in managing Bumiputra housing quota

23 Nov 2015 / 19:06 H.

PETALING JAYA: The Johor government still lacks efficiency in managing its Bumiputera housing quota, and the delays in one of its subsidiary holding's development projects.
According to the Auditor-General's third report for 2014, the state's Bumiputera quota decision policy and the release conditions for each housing project were however deemed satisfactory. The audit was carried out from April to July 2015.
Weaknesses in implementing include:
» Overall performance of Bumiputera quota ownership in Johor could not be measured;
» Marketing and sales of Bumiputera quota units were less than satisfactory;
» The releases of Bumiputera quota units were not made under the stipulated conditions, and the reductions of Bumiputera quota contributions were high;
» The objective of establishing Akaun Amanah Pusingan Perumahan Bumiputera (Bumiputera housing revolving trust fund) and Akaun Amanah Bayaran Sumbangan Kuota Bumiputera (Bumiputra quoto contribution payment trust fund) has not been achieved.
The report recommended the state housing division under the Johor State Secretary Office to maintain the updated and complete Main Registry to measure the performance of Bumiputera quota ownership by project and district.
It also proposed reviewing the current status of Bumiputera quota for advertised projects, and to establish rules that enable legal action to be taken against developers not complying with the sale conditions and quota release, amongst others.
Separately, the audit of PIJ Property Development Sdn Bhd (PPDSB) from Feb to May 2015 revealed good fiscal performance, from 2012 to 2014. Alongside property development, it is also involved in palm oil plantations and investment holding.
PPDSB is wholly owned by the Johor Islamic Corporation (PIJ) via its subsidiary PIJ Holdings Sdn Bhd (PHSB).
Despite earning a pre-tax profit of RM10.15 million and retaining RM23.54 million in earnings last year, the report noted the following shortcomings:
» Certain projects, such as four three-storey office shop lots and 15 two-storey office shop lots in Taman Pesona in Kluang, which were only completed after the deadline was extended several times, with approval;
» Completed projects that are yet to be fully sold. The report cited 67 office shop lots and 63 bazaar lots at Jalan Niaga 15 in Kota Tinggi as an example;
» Projects long in the planning but remain undeveloped. The developments at Mukim Pletong in Johor Bahru, and Mukim Serkat in Pontian were first approved in Feb and Nov 1995 respectively. Both sites remain empty at the present.
PPDSB was recommended to ensure the joint project is carried out in accordance with the plan, to conduct a thorough assessment on the joint venture company, and ensure the Johor government's returns through the privatisation projects are paid, per the agreed plan.

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