RM172m compensation for PR1MA’s cancelled projects paid

pic by MUHD AMIN NAHARUL

THE government, via the Housing and Local Government Ministry (KPKT), disbursed RM172 million as compensation for 17 cancelled 1Malaysia Housing Programme (PR1MA) projects.

KPKT Minister Zuraida Kamaruddin said the full settlement of the compensation, which includes the pre-development, labour and delay costs, for all 32 cancelled projects is expected to be made by 2023.

“From the negotiation, we have managed to bring down 30% of the total compensation for all the cancelled projects. Compensation for 17 projects has been paid, while the remaining 15 are still in discussion,” she told the Dewan Rakyat yesterday.

Zuraida was responding to a query by Chow Kon Yeow (DAP-Tanjong) on the approach that could ensure an adequate number of affordable houses in all states without the existence of the PR1MA programme.

Zuraida said the ministry will utilise productive land plots to develop new residential projects through a cooperation between the National Housing Department, Syarikat Perumahan Negara Bhd and others to recover the losses from the cancellation.

The minister added that the government implemented a PR1MA project rationalisation plan that is in line with the circular issued by the Finance Ministry on the improved governance and procurement dated June 29, 2018.

The circular ordered PR1MA’s residential developments with progress under 15% to be delayed and reviewed.

Between 2013 and 2018, 94 PR1MA projects were launched which were then reviewed by PR1MA Corp Malaysia.

Of the total, 32 projects were cancelled, while work on the remaining 62 projects continued.

Citing Penang as an example, she said only one PR1MA project was cancelled in the state with its full settlement and termination costs still being negotiated.

“The two other PR1MA projects in Permatang Pauh and Bukit Gelugor in Penang are still being developed, involving 1,922 units,” she said.

Previously, The Malaysian Reserve reported that the government residential agency is expected to fork out about RM200 million to compensate contractors who were involved in PR1MA’s “sick projects”.

The compensation would also involve an offset of land parcels deemed not worth keeping by the agency after all the due diligence was conducted, according to the report.

On the supply of affordable homes, Zuraida said more than 200,000 units of Rumah Mampu Milik (RMM) have been built or in development since 2018 by three housing developers under the federal and state governments, as well as private developers.

“Between July 2018 and June 30, 2020, there were 546,755 residential units under the RMM programme, of which 55,496 units are completed and 163,337 units are being developed, while the remaining are still in the planning stage,” she said.