‘RM800mil loss’ to Penang in two housing project
Gerakan Youth to ask to see project agreements with state government under Freedom of Information act.
(Free Malaysia Today) – The state government has been accused of negligence in two private projects for affordable homes on the island, causing projected losses of up to RM500 million.
Jason Loo of Penang Gerakan Youth said the financial loss incurred by Penangites came from the people having to hear higher costs in buying houses in the two projects, and could have been avoided had the DAP-led state government been more competent and responsible.
He questioned whether the developer of the 98 Nibong Residence project had provided 30 per cent low to medium cost (LMC) homes out of the total 107 units. “Where are these LMCs? Did the developer pay the contribution in lieu of LMC houses?” asked Loo.
The state executive councillor for housing, Jagdeep Singh Deo, has previously said the project was approved before the implementation of the affordable homes scheme in August 2014, four years after Pakatan Rakyat came to state power.
Loo said it appeared that the developer had fallen back on old guidelines to provide 30% LMC houses in any housing project consisting of more than 100 units, failing which the developer is supposed to pay compensation of RM120,000 for each unit in lieu.
In the 98 Nibong project, 32 LMCs should have been provided or compensation of RM3.84 million paid by the developer.
The second he gave was a 7,658-unit affordable housing project in Paya Terubong, where under those guidelines, developers was obliged to build 2,298 LMCs or pay RM275mil as compensation.
“Where are these LMC houses? Has the developer paid the compensation in lieu? If paid, where is the money?” asked Loo, who is head of the youth wing’s legal and public complaints bureau.
He said if the Paya Terubong project had been approved after introduction of the affordable home scheme, then the developer would have been able to save RM32mil, where the developer of a 100% affordable-home scheme is entitled to a deduction of RM5 per sq foot from the development charges.
The Paya Terubong project occupies 6.4mil sq feet.
Loo said it appeared that the developer would enjoy triple the benefits of a waiver of LMC units and compensation in lieu, and discount in development charges.
