Rahman skirting real issue in condo project, says Ramasamy

Why is the housing minister involved in an agreement between the developer and buyers, Penang Deputy Chief Minister II asks.

GEORGE TOWN: Federal minister Abdul Rahman Dahlan has not answered questions about his involvement in giving a 12-month extension to a condo developer in Kuala Lumpur in 2015, DAP’s P Ramasamy said today.

Ramasamy, who is Penang Deputy Chief Minister said he had asked why Rahman had allowed the extension after receiving a letter written by a high-profile individual, who had nothing to do with the developer.

“But Rahman has instead chosen not to answer the pertinent question on Malaysians’ minds by choosing to attack the Penang government.

“What is the housing minister’s involvement in an agreement between the developer and buyers? Is the housing minister involved in the project?

“That is why I suspect there is possible ministerial misconduct. And I feel the High Court’s recent decision declaring the extension of time by the minister as invalid, carries weight,” Ramasamy said.

The Kuala Lumpur High Court recently ruled against developer BHL Construction Sdn Bhd over a 12-month extension allowed by Rahman.

Rahman’s extension had resulted in 104 house buyers being unable to claim compensation for not meeting the targeted completion date of their condos in Jalan Kuchai Lama, Kuala Lumpur.

Rahman served as urban wellbeing, housing and local government minister from May 2013 to June 2016. The current urban well-being, housing and local government minister is Noh Omar.

On Wednesday, Batu Kawan DAP leaders Satees Muniandy and P David Marshel lodged police reports alleging that the wife of Attorney-General Mohamed Apandi Ali had lobbied Rahman on behalf of the developer for the extension.

Today, Rahman denied claims of power abuse, saying he had acted according to the powers vested in him as the minister in charge of housing matters at the time.

He said the developer had been given the extension after strict checks that took into account the circumstances, construction materials, natural disasters and worker issues.

Rahman said as minister he was duty bound to avoid the possibility of housing projects being abandoned as a result of extensions to developers being rejected.

He said house buyers, too, would be in a “worse off” position if housing projects were abandoned.

He also accused DAP of making a “highly defamatory conclusion” that he had abused his powers.

Rahman claimed the Penang government had also extended time given to contractors, and dared Ramasamy to deny it outright if indeed they hadn’t.

While admitting that the Penang government had extended contracts before, Ramasamy argued however that there was nothing wrong in doing so.

He said a job to a contractor was based on a deal between the state government and a contractor.

Ramasamy said in the case of the KL condo developer, it was based on a sale and purchase agreement (SPA) between the developer and the house buyers.

“Now, if a minister intervenes, isn’t that third party involvement? Is it ethical for the government to step into a SPA contract between two parties?

“At least the Penang government gave an extension to some contractors because we were one of the parties in the contract.

“In the case of Rahman and the developer, we have a government minister playing second fiddle in something that is between two parties,” Ramasamy said. -FMT