Last Updated: 3:45pm, Mar 28, 2014

GEORGE TOWN (March 28): The Penang government says it will come down hard on errant developers who are believed to be behind rogue contractors that threaten house owners to use their services to renovate or repair their units.

State Housing, Town and Country Planning committee chairman Jagdeep Singh said the state will not hesitate to blacklist any developer who insists on using their contractors.

“We will not hesitate to blacklist them particularly if they are at fault or found to be condoning the act of contractors that use threats or insist their services are used. We will not tolerate gangster contractors.

“There is no clause within any Sale and Purchase Agreement or statutes that require the buyer to enlist a particular contractors’ services. The buyer was free to appoint his or her own contractor,” he told a press conference.

Jagdeep said the warning from the state was in view of two complaints received recently from housebuyers of a new development in the Northeast District.

He added that a letter has been written to the Penang police chief SDCP Datuk Abdul Rahim Hanafi to intervene and assist housebuyers who complained about such acts.

Jagdeep said he would also meet with Abdul Rahim next week to further discuss this problem which has been in existence for more than 10 years.

In the past, it was learnt that housebuyers who had fallen victim to such schemes had their complaints allegedly turned away by the police who claimed that it an issue between the buyer and the contractor.

It was also believed that if the inhouse contractors’ service were not used, then the buyer would still be required to purchase building materials from the contractor or risk threats.

Jagdeep said the police cannot wait for the problem to get out of hand and it should be nipped in the bud.

Asked what type of action could be taken on such cases, Jagdeep cited criminal intimidation and harrassment under the Penal Code.

Meanwhile, Jagdeep asked whether low cost units within the MyHome scheme were priced at RM80,000, and not RM42,000.

According to MyHome Scheme which was introduced by Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan yesterday, the federal government will allocate RM30,000 incentive each for 10,000 units.

He reportedly said with the incentives, private developers under MyHome 1 scheme are required to build a minimum of 800 square feet units priced between RM80,000 and RM120,000 in Peninsular Malaysia and between RM90,000 and RM120,000 in Sabah and Sarawak.

Due to the alleged discrepancy, Jagdeep asked whether the ceiling price for low cost units had risen.

He said a letter to Abdul Rahman requesting information on this question and the number of units that would be built in Penang was sent today.

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