I refer to the news report ‘ New EPF scheme for house buyers ’ . The Association For Abandoned Property Owners (Victims) is very concerned over this news. It poses a significant risk to the members of the EPF where future contribution into the EPF are also being pledged as money that can be withdrawn from a worker’s EPF account for the purpose of financing a house purchase.

In theory, the proposal looks good. It will make more funds available to the construction sector as more people would be able to buy a higher priced house. It will generate the economy to a certain extent. The question that now needs to be asked is at whose expense? What happens if the developers do not complete the property as per the sales and purchase agreement?

At the moment, more than 410 projects with thousands of purchasers are stuck as the houses they bought are not complete and in most circumstances, the purchasers had withdrawn part of their EPF savings.

They get no house. They face debt with the banks and they also face a shortage of funds in their EPF account which is meant for their retirement.

While it is still questionable whether the government is legally immune over the issue of uncompleted and abandoned housing projects, Victims can show proof that the government - despite having the power to protect the purchasers’ interest - has not done so. In fact, in most of the cases, the government still tries to revive projects in a ‘mediator’ or ‘facilitator’ capacity. It has not taken proactive steps to protect the purchaser’s interest.

Quite a large segment of property owners whose ownership of house has been denied in this way are government servants, retirees and EPF contributors. Despite that, the ministry of housing does not want to implement the Build-Then-Sell (BTS) concept for housing that is being pushed by the National House Buyers Association.

Vcitims believes that it is time organisations like Cuepacs, the Treasury and EPF work with Victims to force the developers to go into BTS as promoted by the HBA. Organisations like EPF and the Treasury who are the actual end financiers must impose conditions that their financial advances or loans can only used for BTS houses. This, indirectly, will force all developers to go into BTS.

I would like to ask the leaders of the NUTP and CUEPACS what have they done to help their members who have become victims of abandoned housing projects? Have they handled this matter in a way that will force the government to act and protect their members?

I urged the leaders of these associations to think in a proactive manner in protecting house purchasers’ rights. Victims does not support the idea put forward by the EPF unless the disbursement of the funds is only meant for purchases of completed homes.

Under the present scheme, there are too many inherent risk for house purchasers who will eventually become a liability to society and the government.

The writer is pro-tem president, the National Association For Abandoned Property Owners (Victims).