Umno: Why did Penang Govt buy homes for RM140k?

Penang Exco explains that the actual cost of construction of these homes was RM140k, but will be sold to Bumis at RM62,500 and city council units at RM72,500.

GEORGE TOWN: Explain the lower prices paid for bulk purchases of affordable homes meant for Bumiputeras, Penang Umno chief Zainal Abidin Osman told the Penang Government today.

Zainal said the Penang Government’s purchase of 320 units of low-medium-cost (LMC) homes from a developer at RM140,000 each was higher than the RM72,500 “Cat B” regulated price.

“The cost owed to the developer, including a car park, should be RM97,500, not RM140,000 per unit as reported in Roketkini,” Zainal said in a statement today.

Zainal also questioned the state government’s purchase of another 320 units at the same time, as a “contribution” to the city council for “surrendering land” for the said housing project.

“Why must they pay RM67,500 per unit for 320 LMC homes, which were allotted to Bumiputeras, but would later end up as a contribution to the city council?” Zainal asked.

In an immediate response, Penang Housing Committee Chairman Jagdeep Singh Deo said the RM140,000 sum paid was for the actual cost of building a LMC, minus subsidies.

“LMC units are always subsidised by normally-priced units.

“And yes, prices of affordable homes are controlled, but the actual construction cost is conservatively at RM140,000.

“Zainal should know since he is in the industry,” Jagdeep said when contacted.

On the purchase of properties for the city council, Jagdeep reiterated that it was in lieu of taking over their plot of land in Jalan S P Chelliah in George Town.

Last Saturday, Jagdeep witnessed the signing of the deal to purchase the homes. The deal was inked by the Penang Government, state development agency Penang Development Corporation and housing developer Zubicon Sdn Bhd.

Each unit comes with a car park.

The overall amount of RM44.6 million will be paid using the State Bumiputera Housing Trust Account.

The homes will be sold to Bumiputera applicants through the state Housing Department’s selection committee.

The Penang Government will sell all units, bought at RM140,000 each, for RM62,500 to Bumiputeras.

The city council units will be sold at RM72,500.