"I made the mistake" - Ku Nan takes responsibility for assessment hike FIASCO

KUALA LUMPUR - "We made a mistake ... I made the mistake." Federal Territories Minister Datuk Seri Tengku Adnan Mansor said today that he was responsible for sending out the notice on new assessment rates that raised the hackles of thousands of city folk.

Hinting that the new rates may kick in by the second half of 2014, he said a letter informing residents of an impending rate hike should have been sent out instead of a notice.

Tengku Adnan said he had failed to ask City Hall to get back to him after issuing instructions on the new rates.

"I did not ask them (City Hall) to come back to me following the instructions. A letter should have been sent notifying property owners of our intentions. But DBKL (City Hall) acted according to the law, where it says a notice should be sent," he told reporters after meeting Federal Territory Umno leaders on the rates.

He said this had made people think that the new rates were going to be implemented immediately.

"But that is not the case. There is a timeframe for residents to respond and voice their views and displeasure. We will listen and act accordingly," he said.

New rates by 2nd half of 2014

Asked when the new rates will take effect, he said it would be implemented at the latest by the second half of 2014, while not discounting the possibility of it coming into force on Jan 1.

"The increase will take place when I decide on it. The (property) owners have until Dec 17 to voice their objections. We have a panel to listen to these objections, and explain why there has to be an increase. The increase will still happen, only the rates are yet to be determined. We will be fair to the people. This is our promise."

Tengku Adnan reiterated that the increase in assessment is inevitable as there has not been a hike in the last 21 years, creating a situation that is not fair to City Hall as well as property owners.

"When the property owner wants to sell the property, he would want to know the actual price of the property. This (the assessment) would let the people know the actual value of their property."

He said the rates will be calculated according to rental value and not the market value.

City folk have complained bitterly about the proposed rate hike which is between 100% and 300%.

Meanwhile, Titiwangsa MP Datuk Johari Abdul Ghani said while he agrees on an increase in rates, the hike should not be drastic as this would burden owners of low and middle-cost properties.

"The increase must not be drastic. For example, if someone was paying RM200 the previous year, maybe now he can pay RM220. This would be more affordable than a hike to RM600." - The Sundaily