The Penang government has been criticised for taking credit to build low-medium-cost homes when the units were actually planned during the reign of Barisan Nasional, prior to 2008.

penang gerakan quah ooi heong.jpg Penang Gerakan housing bureau chief Quah Kooi Heong ( right ) said on Aug 1, the state government denied accusations that it had never launched affordable housing projects for the poor.

Chief Minister Lim Guan Eng had then revealed that a total of 11,596 low and low-medium-cost units (LMC) have been approved since 2008.

“Of the 11,596 units, he said, 8,175 units were built by private developers while the government and its agencies constructed 3,421 units,” said Quah in a press conference today.

“He did not mention that the 3,421 units were in fact inherited from the previous Barisan Nasional government,” added the former Kebun Bunga assemblyperson.

Quah slammed the chief minister for failing to build affordable houses for needy Penangites although he pledged and emphasised that his government would be based on CAT - competency, accountability and transparency.

Lim was also ticked off for not walking his talk when advocating a people-focused government with zero hardcore poverty.

These accusations come hot on the heels of the recent Auditor-General’s Report which stated that the Penang administration has not constructed a single LMC between 2008 to 2010.  

The report added that all LMCs in the Penang state have only been built by private developers.

Lim retorted by saying that it was the practice for the state government to build such units through PDC , its development arm, as it does not directly build such houses.

He added that the federal government does the same thing, too, through Syarikat Perumahan Negara (SPNB).

‘Build LMC on state land’

Meanwhile, Quah urged the Penang government to build LMCs on the island, and not merely on the mainland.

He said that Lim had announced that LMCs are to be built in Batu Kawan, which is situated on the mainland.

“This will not solve the LMC shortage problem on the island... the state cannot build the units only in one area as island dwellers will not have affordable houses,” he added.

Quah also criticised Lim for transferring the state’s social obligations to build LMC homes to a private developer.

He pointed out that  102 acres of land in Bayan Mutiara had been handed over to a private company to develop the land.

This move, he said, will not only increase the cost of the LMC but also “defeats” the concept of affordable housing by the Penang government.

“The state, through its development arm, the Penang Development Corporation, should build these units on state or local council land,” he said.

“The state government should not make quick profits by selling state and or local council land to private developers,” he added.

Gerakan is not the only party grumbling over the state’s lack of ability to provide affordable housing for Penangites.

In August, DAP’s very own Jelutong MP Jeff Ooi landed in the soup for calling on state executive committee member on Town and Country Planning, Housing and Arts, Wong Hon Wai, to resign for not being able to resolve the LMC problem.

The conflict between DAP leaders, said Quah, reflected the “incompetence” of the current Penang government to overcome the ongoing housing issues.

He added that Penangites also suffer due to changes in government policies, for example, the latter’s decision to randomly and on an ad hoc basis increase density above permissible density.

He stressed that the state also decides randomly to waive the collection of quit rent and land assessments.

“However, the state also decided to increase the land conversion premium, rezoning fees and development charges which has resulted in further house prices increase and burden to Penangites,” he added.

Quah called on the state government to immediately review its LMC housing policies before it becomes “irreparable”.

He was referring to an announcement in August that developers who could not or chose not to build LMC houses would be required to pay premiums of RM40,000 for each low-cost unit they were supposed to build.

“Stop receiving these contributions but strictly enforce the existing 30 percent LMC units requirement on developers,” he stressed.

Quah was accompanied by BN coordinators Ng Fook On (Jelutong), Teoh Hang Chong (Air Itam),  Lee Boon Ten (Batu Lanchang) and state Gerakan housing bureau secretary Khoo Gaik Yee.