PENANG: Land-scarce Penang is now facing the prospects of forking out huge compensations to squatters in the aftermath of last year's Kampung Buah Pala controversy.
In fact, the quantum of compensation accorded to the squatters could be the highest in the country if one were to analyse the deal.
In 2009, 23 families fought tooth and nail against a developer, the Federal Court and the state government for almost six months, disobeying a legal writ for them to leave a 2.6ha plot.
The land, destined for a condominium project, housed a traditional Indian village where cattle are reared with limited farming activities.
Led by a Tenaga Nasional Bhd (TNB) technician, the families, descendents of settlers from the now defunct 100-year-old Brown Estate, laid siege when a demolition crew decended on their village.
Several women squatters even threatened to immolate themselves during the tense encounter with the demolition crew, the developer and the police.
After intense negotiations, the squatters were promised that the developer would share the land parcel with them and also build a double-storey terrace house for each family.
The local market value for such homes, especially if one took into account the strategic middle-class location, was estimated to be RM200,000 to RM400,000.
Fourteen of the families took the deal while the remaining nine did not commit themselves as they were concerned over the grey areas in the legal documentation distributed to them.
Precedent set in Buah Pala
Today, five villages in Jelutong are facing a form of eviction, with two taking the battle to the courts.
It remains to be seen how the Tanjong Tokong villagers handle the issue of their own forced relocation.
In Butterworth, the Rumah Hijau longhouse squatters are also embroiled in a stand-off with another developer.
Both private sector developers and government-linked companies here are facing the prospect of dealing with their respective squatters, with the precedent set in Buah Pala looming in the background.
Several squatters in Jelutong and in Tanjong Tokong continue to stave off eviction notices, including court writs served on them by baliffs as their land are now owned by developers.
Penang DAP leaders have in private contended that Buah Pala has become a precedent in a state with a limited landbank and property prices said to be among the country's highest.
"It is a headache for us. Even if the remaining squatters do not get the terrace houses, they may end up demanding cash compensation equalivent to what the folk in Buah Pala got."
A DAP leader, who preferred not to be named, said besides dealing with legality issues, the squatters are holding a series of street protests, a trend unheard of before 2009.
Last weekend, about 50 families from Kampung Pokok Assam in Jelutong demonstrated, demanding that they be not evicted.
Serves Chief Minister Lim Guan Eng right! says Penang-based Parti Cinta Malaysia vice-president Huan Cheng Guan.
Politicians must walk the talk
The compensation with the Buah Pala squatters was made without considering long-term implications, Huan said.
Developers have to be fair when they evict the squatters, he said, adding that a tribunal needs to be set up to mediate the issue as Penang's growth is hindered by such disputes.
"In an age where foreign direct investments are dwindling and domestic consumption is valued as a tool to spark growth, the property market would suffer if the development costs end up as too pricey," said Huan.
M Sugumaran, the TNB technician who led the Kampung Buah Pala fight, said he is glad to note that squatters in Penang are using the Buah Pala episode as a precedent here.
"We may have lost. Our homes have gone but we have left a legacy on how developers address the issue of evictions.
"We are not anti-development, we want compensation which takes into account the rising costs of living," said Sugumaran.
He noted that the nine families who did not take the initial offer of a double-storey house, remained in limbo as nobody from the state government has bothered to look into their plight.
Sugumaran said last year's controversy serves to be a lesson to politicians to walk the talk.
"A promise was made that we need not move. We fought on that premises. Politicians need to be wary when they deal with squatters, not only in Penang but in the country," said Sugumaran.
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