PETALING JAYA: Blacklisting housing developers and their board of directors for abandoning housing projects will send a strong message that such conduct is unacceptable, said National House Buyers Association secretary-general Chang Kim Loong.
He was commenting on a call by Pontian MP Datuk Seri Ahmad Maslan for the government to be firm in taking action against developers who do not complete projects on time, and that they should be blacklisted and taken to court.
Ahmad told the Dewan Rakyat on Monday: “The companies could be considered as having cheated the buyers as they had stated in their advertisements that the projects would be completed within three years or so, but failed to meet the deadline.
“The action of these companies not only affects the buyers but also the government, which has to fork out funds to pay other companies to rehabilitate the abandoned projects.”
Chang said there were enough stringent rules and safety nets to protect the rights and interests of house buyers affected by project delays.
“These provisions, under the Housing Development (Control and Licensing) Act, include criminalising (project) abandonment, (that is) an offence that carries a maximum three-year jail sentence and a fine of up to RM500,000, or both.
“The Act also requires developers to place a deposit equivalent to 3% of the development cost to deter them from abandoning the project.”
Chang said other provisions allow for monitoring of projects and the freezing of the Housing Development Account, which is an account set up specifically for development projects.
The purpose of this account is to ensure developers have enough funds to complete projects.
He added that house buyers who rely on legislation are often let down since it is only good on paper, and it would continue to remain in archives unless existing laws are used to their full extent.
Chang said the main problem was not the lack of laws, but laxity in enforcement to monitor, police, supervise and prosecute errant housing developers.
He added that as long as the rules are not enforced, the problem will never be solved.
“Blacklisting would be a good measure. Blacklisted directors should never be granted a developer’s licence in the future. As the saying goes, prevention is better than cure because it is too late to close the stable doors once the horses have bolted,” he said.
Consumers’ Association of Penang president Mohideen Abdul Kader concurred with Chang’s suggestion of blacklisting the housing developers’ board of directors if they fail to deliver.
“If we don’t blacklist them, they would probably register another company. This would not break the cycle of abandoned housing projects, and this will affect Malaysians who paid and hoped to get their unit.
