AG”s Report: Release of malay quota by six Malacca private developers exceeds limit

AG''s Report: Release of malay quota by six Malacca private developers exceeds limit

MALACCA, May 18 — The weak control of Malay quota for private housing projects in the state had, among others caused the excessive release of Malay quota by six developers, according to the first series of the 2015 Auditor-General’s Report which was released Wednesday.

Audit conducted at the Malacca Land and Mineral Office (PTG) and state housing board found the release of such properties resulted in the 30 per cent quota in rural areas and 10 per cent in urban areas not met as set.

Out of five developers which should maintain the 30 per cent Malay, four kept the quota at 28 per cent, 25 per cent, 21 per cent and 6.9 per cent respectively, while the fifth developer did not maintain any Malay quota.

Another developer which should have kept the 10 per cent quota did not maintain any Malay quota.

Audit also found weaknesses in control implementation and as such, the performance of the overall Malay quota could not be measured and there was no monitoring as well as enforcement on discounted prices for Malay quota properties.

“The management of Malay quota on private housing projects in Malacca was satisfactory from the aspect of Malay quota release process but the mechanism to control Malay quota needed to be improved,” the report said.

The report also stated discount rates for sales of Malay quota properties were between five and 15 per cent based on the selling prices of between RM25,001 and exceeding RM200,000, but Malacca PTG did not put any control on the discounts.

“There was no reference on the final selling prices as there was no regulation or guideline set as conditions in sales advertisement and selling price,” the report said.

In this regard, the audit proposed the establishment of a special unit to monitor and enforce to ensure the interest of Malay quota in property ownership was assured.

A total of 8,045 units of properties were developed by 59 developers through 63 projects approved between 2013 and 2015 in the state. Of the total, 4,027 units were put under Malay quota.

— BERNAMA

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