Rahman Dahlan denies abusing power as housing minister

Minister in the Prime Minister's Department Abdul Rahman Dahlan has denied abuse of power in granting an extension of time (EOT) for the construction of condominium projects by BHL Group of Companies.

"In the particular case referred to by DAP, there is no abuse of power when I was KPKT minister.

"The decision I took was based on the powers clearly given to KPKT minister as stated in Act 118 (Housing Development (Control and Licensing) Act 1966)," said Abdul Rahman, who was Urban Wellbeing, Housing and Local Government Minister (KPKT).

He added that the decision in granting EOT was based on merit and was not influenced by support letters.

"In respect of support letters, I can assure the public that all EOT applications are approved based solely on merit.

"No support letters can supersede the stringent procedures in approving the EOT applications.

"In fact, support letters have no value in determining the approval. Those letters, at best, are just formalities and pleasantries," he said in a statement.

Abdul Rahman was responding to Penang Deputy Chief Minister II P Ramsamy who yesterday revealed that police reports were lodged against the minister and the attorney-general's wife, Faridah Begum KA Abdul Kader.

DAP parliamentary leader Lim Kit Siang on Tuesday claimed that Faridah had written a letter to Abdul Rahman requesting for EOT for two projects under BHL Group of Companies.

The EOT would have allowed BHL not to pay liquidated and ascertained damages (LAD) to homebuyers for taking more than three years to complete the projects.

Elaborating on the matter, Abdul Rahman said the Housing Development Act 1966 was amended in 1989 to allow for EOT in a bid to curb the widespread abandoned projects in the 1980s.

"The government needs to balance between the right to compensation and the possibility of the house buyers themselves getting into much serious problem if the housing project is abandoned.

"In cases where the appeal involves high-end housing projects such as the one in question - the house buyers will be in even more precarious position because of the government's rescue policy only applies to abandoned low-cost housing projects.

"So the responsibility of the KPKT minister in considering (an) appeal is to balance each stakeholder's interest including suppliers, financial institutions, developers and the buyers," he said.

Abdul Rahman added that if the project were to be abandoned, then even banks and construction material suppliers will face serious troubles.

"Other businesses catering for household items such as electronics, electrical and furniture will also be affected which could lead to potential loss of jobs in those businesses," he said.

Abdul Rahman said Ramasamy's claim was "highly defamatory" and demanded that he reveal whether the Penang government had ever granted EOT to any contractors in the state.

The Kuala Lumpur High Court on Monday declared the EOT granted by Abdul Rahman for the two projects were invalid.

The EOT would have allowed the developer 48 months to complete the projects instead of 36 months, as outlined in the sales and purchase agreement, before having to pay LAD.- Mkini