KOTA SAMARAHAN: The Housing Ministry cannot interfere in the issue over the repossession of 19 low-cost houses in Stutong that are being handled by the court.
Assistant Minister of Housing Datuk Abdul Karim Rahman Hamzah said it was a private matter between the developer and the buyers.
“We have held meetings to discuss this problem but now that the case has been brought up in court, it is not right for the ministry to interfere,” he told reporters after the swearing-in ceremony of Samarahan District Council councillors and Chinese New Year gathering at the civic centre here yesterday.
“We do empathise with their situation but from my understanding it was the court that gave the order to repossess the houses after the buyers failed to repay their loans,” he said.
Property developer Ibraco Bhd on Tuesday explained that the repossession of the 19 low cost houses was done after several buyers reneged on the payment of installments while others had not paid a single sen in the past four years.
“I am also made to understand there are several who have not paid any installment for up to eight years. The buyers should know that they can’t possibly live in the houses for free,” he added.
Abdul Karim also said that several of the buyers even refused to sign the loan as well as sales and purchase agreements when the houses were handed over to them.
According to Ibraco’s press statement, they reiterated that the residents had purchased the houses from them in 2005 and were given a grace period to settle the payment by monthly instalments without any interest.
However, several residents had taken the situation for granted and did not pay a single sen for eight years while others made inconsistent payments.
Ibraco had no choice but to take legal action to recover the RM3.2 million due from more than 90 residents since 2005.
Over 90 house owners held a demonstration in front of Ibraco’s office on Monday, claiming that they were forced to vacate their houses after failing to settle the lump sum amount owed to the developer.
Bandar Kuching MP and state DAP chairman Chong Chieng Jen meanwhile said he had written to the Housing Ministry and Ibraco but had yet to receive any response.
Chong argued that these people were squatters with no fixed income who had agreed to move for the sake of development.
He also felt that the issue should be dealt in a more humane manner instead of the developer focusing on profiteering.
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