Bank harassing buyers for non-existent flat

Buyers of units in Block E in PJS1 still receiving notices to pay up overdue interest despite the state government's pledge to resolve the issue.

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PETALING JAYA: Some 276 families who had purchased low-cost flat units in Block E of PJS1 are being served notices by a bank for overdue interests eventhough the project has yet to take off.

Peter Brickworks Sdn Bhd, the developer for the project, had reneged on its promise made in 2003 to build the flats for them, leaving the residents without homes but with debts to settle with the bank for loans taken.

The Selangor government subsequently stepped in to take over the project from the developer last month.

Selangor State Housing, Building Development and Squatters Committee chairman Iskandar Abdul Samad told the residents the state government would negotiate with the bank to waive interests on
loans taken by the residents.

Residents action committee chairman, M Sugumaran, said the residents were now being given the run-around despite the promise made by the state government to revive the project.

“All the state authorities are telling me that they are in the midst of holding meetings to revive the project. Till now, there’s been nothing in black and white,” said Sugumaran.

He added that the residents attended a meeting with the Petaling Jaya City Hall (MBPJ) two weeks ago, highlighting their grouses but nothing has come forth since.

“Five buyers, currently living in PPR flats in Lembah Subang, told me that they received calls from the bank asking them to pay up on their instalments for the non-existent Block E project.

“When they told the officers that the state government is in the midst of resolving the matter with the bank, the officers just brushed the matter aside and insisted on payments,” said Sugumaran.

He also said several buyers in Lembah Subang were still receiving reminders from MBPJ to pay rentals despite being promised by city hall that it would bear the cost till Block E was built.

“It seems there is a communication breakdown in the city hall itself,” said Sugumaran.

Sugumaran said that he had sent MBPJ councillor Latheefa Koya numerous text messages on the matter and the only reply he received was that she would be meeting with Iskandar soon.

Ongoing talks

When contacted, Iskandar said the state government had decided in a meeting yesterday that the Block E project would be handled by Menteri Besar Abdul Khalid Ibrahim himself.

He added that there were several matters that needed to be resolved pertaining to the project before they could provide a written agreement to the residents.

One issue, he said, was in regard to the stalled school project which was originally scheduled to be built at the site where the longhouses are located.

“We are planning to build the school near Taman Kanagapuram, the site where Block E was to be initially developed. We need to discuss it with the federal government.

“We are shifting the school project as Block E is now slated to be built at the longhouse area,” said Iskandar.

He added that the bank has agreed to waive part of the RM1.1 million in interest owed to the bank in their preliminary talks and is puzzled as to why the bank was still calling the buyers.

“As for the MBPJ rental payment reminders, perhaps the officers had got their records mixed up. I urge those who had received reminders to forward them to my officers. We will deal with it.”

The buyers of the Block E flat units, formerly squatter settlers, were promised by Peter Brickworks in 2003 that it would build low-cost flats for them when they moved out from their homes.

Although the developer had already built four flat blocks, the developer was unable to build Block E due to a court order served against the project by residents near Taman Kanagapuram.

Two residents at the PJS 1 longhouses, who had been at loggerheads with Peter Brickworks for years, had moved out from their makeshift camp on July 8.