Low-cost housing scam
07/06/2007 The Star By Dharmender Singh

Investigating: Mislan said the council would carry out its own survey.
NEARLY half of the former squatters in the Klang municipality have rented out the low-cost units given to them and many others have now been turned into hostels that occupy up to 15 people per unit.

Klang municipal councillor Datuk Teh Kim Poo said many of the low-cost unit owners involved had never lived there at all and a large part of the units were now occupied by foreigners.

He said low-cost units were meant for the lower income group and owners of the units that rented them out had deprived genuine recipients who were still homeless and living in poor conditions.

He said having so many people occupy one unit increased the population density tremendously and, in turn, gave rise to various social and security problems in the areas concerned.

“Somehow they managed to hoodwink the Klang Municipal Council into believing they were poor to get the units but this does not mean that we should let them get away with it,” he said during the Klang Municipal Council (MPK) board meeting yesterday.

Teh said he would raise the matter during the next state assembly sitting and ask the state government to amend laws on the ownership of low-cost units.

»This does not mean we should let them get away with it«DATUK TEH KIM POO

“I will request for amendments that will allow us to strip the buyers of ownership if their units are rented out,” he said, adding that the state government’s involvement was vital as the same type of abuse could be taking place elsewhere.

MPK councillor Alex Thiagarasan said it was appalling that people would take units that they did not need while others lost a chance to buy one of the cheap units.

He agreed that the state government should take the houses away from such owners and give them to those more deserving.

Council president Mislan Tigiu said the council would conduct its own survey to determine the number of units being rented out and the problems that arose when units were turned into hostels.

He said the council would also look into legal options available to it in order to act against such errant owners.