GEORGE TOWN, May 20 – The DAP-led Penang government will not hesitate to take action against developers who do not follow the procedure on sale of Bumiputera lots. State Housing and Town and Country Planning Committee chairman Jagdeep Singh Deo said developers must adhere to the procedure of advertising the availability of Bumiputera lots at least four times over a six-month period before applying for state approval to release the units in the open market.
“Developers who do not follow this procedure will be issued show-cause letters and if we are not satisfied with their replies, they will be blacklisted The developers must also adhere to the 30 per cent Bumiputera quota for all housing projects,” he told reporters, here, Thursday.
Jagdeep was responding to the Auditor-General’s Report 2015 which criticised the state for its poor implementation of the Bumiputera quota for housing projects that included low number of the units sold and the units being sold to non-Bumiputeras before the units were approved for release into the market.
“There was a case where a developer refused to sell a Bumiputera lot to a Bumiputra even though they still had units left in the project. The home buyer complained to us and we knew they still had Bumiputera units left, so we issued them a show-cause letter,” he said.
On the unused Penang Bumiputera Housing Trust amounting to RM88 million that the AG pointed out, Jagdeep said they had plans to use it to cross subsidise 320 units of affordable housing at SP Chelliah. He said it will be used to subsidise the medium-cost units which will be reserved strictly for Bumiputeras and each unit will be sold at RM72,500. He said the state would pay the total cost of RM140,000 per unit in the construction of the housing units using funds from the Penang Bumiputera Housing Trust.