Fall out for Rahman Dahlan and AG’s wife from the BHL Construction Sdn Bhd verdict?

FALL OUT

Former housing minister Abdul Rahman Dahlan granted the extension, following a letter from a person claiming to be the director of the developer company, BHL Construction Sdn Bhd (BHL).

Lim Kit Siang: Faridah Begum K A Abdul Kader was the person who had written on behalf of BHL. Lim added that Faridah was the wife of AG Mohamed Apandi Ali.

http://www.freemalaysiatoday.com/category/nation/2017/03/01/will-the-ag-investigate-his-own-wife-asks-ramasamy/

High Court judge Hanipah Fakirullah, in allowing a judicial review application by 71 house buyers last Tuesday, said the minister’s decision went against the Housing Development (Control & Licensing) Act (Act 118).

https://www.malaysiakini.com/news/374465?utm_source=dlvr.it&utm_medium=twitter

Rahman, who held the position from 2013 to 2016, has since said his former ministry will be filing an appeal.

http://www.freemalaysiatoday.com/category/nation/2017/03/04/housing-ministrys-extension-of-time-on-projects-irrational/

24 March 2017

Duo reveal documents related to Rahman Dahlan ‘abused power’ claim

Susan Loone

Two DAP grassroots leaders have revealed documents related to their allegation that former housing, local government and urban-wellbeing minister Abdul Rahman Dahlan abused his power in a in a high-profile housing case.

Satees Muniandy and David Marshall also told a press conference in Penang this morning that officers from the Bukit Aman commercial crimes department had quizzed them over the matter on Monday.

“Since the officers kept harping on whether we have proof, we will provide the documents,” said Sates, who is the Batu Kawan DAP division secretary.

The pair revealed several documents from the Companies Securities Commission of Malaysia to back their claims.

The documents included a letter dated April 20, 2014, from developer BHL Construction Sdn Bhd to the Licensing Unit at the Urban Wellbeing, Housing and Local Government Ministry, to request for extension of time (EOT) for its Palace Court project in Cheras, Kuala Lumpur.

The duo provided to the media, a letter dated Oct 24, 2014, signed by Mohamad Yusoff Ghazali from the Housing Control section of the ministry, rejecting BHL’s request for EOT.

They also shared a letter dated Oct 28, 2014, from Faridah Begum KA Abdul Kader to Abdul Rahman, who was then the housing minister, requesting for the said EOT.

According to the letter, Faridah had claimed to be a director of BHL.

However, DAP veteran Lim Kit Siang had earlier pointed out in a statement on his blog that Faridah, the wife of attorney-general Mohamed Apandi Ali, was allegedly not the director of the company.

Minister’s decision affected 104 buyers

According to a letter dated July 2, 2015, Faridah Begum had written to one Jessylina Mat Lazim asking about the decision on the letter she sent to the ministry on Oct 28, 2014, where she allegedly requested for the EOT.

Based on a letter dated Nov 17, 2015, one Jayaselan K Navarathnam from the Housing Control section wrote a letter to BHL, informing the company of the approval of the 12 months’ EOT requested on Oct 28, 2015.

https://www.malaysiakini.com/news/376885?utm_source=dlvr.it&utm_medium=twitter

6 March 2017

DAP takes Rahman’s condo delivery extension issue to MACC

March 6, 2017
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BUTTERWORTH: Two Penang DAP men lodged a report with the Malaysian Anti-Corruption Commission (MACC) today alleging that a federal minister had abused his powers by granting an extension for a condominium project in Kuala Lumpur.

Batu Kawan DAP’s Satees Muniandy and P David Marshel lodged the report against former urban wellbeing, housing and local government minister Abdul Rahman Dahlan at the state MACC office here today.

The report lodged with the anti-graft agency this morning comes days after the Kuala Lumpur High Court ruled against a developer, BHL Construction Sdn Bhd, over a 12-month extension which had been approved by Rahman in 2015, while he held the cabinet portfolio.
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“His actions are tantamount to misappropriation and misuse of powers as a housing and local government minister,” Satees and David had declared in their report filed with the MACC.

The DAP duo also alleged that a woman who claimed to be a director of BHL had lobbied for the extension although she is supposedly not part of the company.

“Despite having all the resources to verify the woman’s position in the said company, he had not done so.

“Hence, Rahman had purposely misused his powers as a minister to write letters to allow an extension of the said condominium project,” Satees and David said in their report.

The men also provided Companies’ Commission of Malaysia (formerly known as ROC) details listing the names of BHL Construction’s directors to reporters present to prove that the woman who had written the appeal was not a director of the company.

http://www.freemalaysiatoday.com/category/nation/2017/03/06/dap-take-rahmans-condo-delivery-extension-issue-to-macc/

5 March 2017

2m2 minutes ago

Rahman used false analogy to accuse Penang, says CM

Abdul Rahman Dahlan used a “false analogy” that the Penang government also grants extension for its own contracts, Chief Minister Lim Guan Eng said.

Lim accused Rahman, former urban wellbeing, housing and local government minister, of trying to wriggle out of being exposed as the “Minister for Housing Developers”.

“His argument is that if state agency such as the Penang Development Corporation (PDC) can grant extension of time (EOT), why can’t he do the same?” Lim noted in a statement yesterday.

“This is a false analogy. If a brother is bad, it does not mean that the sister or other family member is also bad.”

Lim clarified that PDC granted the EOT because it was within the state agency’s rights to do so as a party to the contract.

He said EOT was granted only after discussions between PDC and the contractor.

“Even the auditor-general has given PDC the green card for approval of the EOT after hearing and accepting PDC’s explanations,” added Lim, who is also PDC chairperson.

Lim was responding to a series of tweets by Rahman last Saturday, where he posted a page from the 2015 Auditor-General’s Report that showed Penang had granted EOT for five different projects.

https://www.malaysiakini.com/news/374598?utm_source=dlvr.it&utm_medium=twitter

4 March 2017

44m44 minutes ago

Penang says EOTs not same as those by housing ministry
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PETALING JAYA: Penang Deputy Chief Minister II P. Ramasamy has refuted a claim that the state government gave developers an extension of time (EOT) to complete their projects.

“We have given extension of time to contractors but those were not EOTs as EOTs are from the federal government not the state government,” he told a press conference at the DAP National Leadership Retreat 2017.

Ramasamy said the contractual extension of time given by the state government was agreed upon by the architect.
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“Whether (the extension is allowed) is under the jurisdiction of the Urban Wellbeing, Housing and Local Government (ministry).

“Therefore, the Penang government could not have been allowed to give any EOTs,” he said.

Read more at http://www.thestar.com.my/news/nation/2017/03/04/penang-deputy-cm-state-gives-out-contractual-extension-of-time/#6YFG3C1UYk3P4TVx.99

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1h1 hour ago

This is the proof. DAP Penang state Govt granted EOTs up to 544 days. Source: Auditor General Report 2015 on Penang State.

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1h1 hour ago

(3) I know they won’t dare to deny because I have proof of DAP Penang Govt granted EOTs. Should I just reveal the proof?

(2) In the mean time, I like to see if Tony Pua & P. Ramasamy will deny that Penang Govt also gave EOTs. So far deafening silence from them!

(1) The High Court decision on legality of EOT extension is being appealed by the Govt. Let’s see the outcome of the appeal later.

4 March 2017

16m16 minutes ago

Housing ministry’s extension of time on projects “irrational”
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PETALING JAYA: The National House Buyers Association (HBA) has taken Abdul Rahman Dahlan to task for giving a developer more time to complete a project during his previous tenure as urban wellbeing, housing and local government minister, saying it served to place purchasers at a disadvantage.

HBA honorary secretary-general Chang Kim Loong told FMT Rahman’s reasoning for granting of Extension of Time (EOT) was “irrational”, stressing that it denied the rights of house buyers to pursue compensation in the form of liquidated and ascertained damages (LAD).

“The effect of an EOT is that the developers do not have to pay compensation or LAD to the house buyers after the project is completed and vacant possession delivered,” he said today. “Clearly, the only reason for granting an EOT is to save money for the developers.”

He explained that buyers cannot refer to LAD unless purchased homes are completed and vacant possession delivered as stated in Schedule H of the Sale and Purchase Agreement.

In a landmark decision the High Court ruled on Monday against developer BHL Construction Sdn Bhd over a 12-month extension that led to house buyers not being able to claim compensation.
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Chang noted that even the Real Estate and Housing Developers Association (Rehda) has come out in support of the High Court decision

He questioned if the number of abandoned projects have been reduced by the issuance of EOTs that has transpired in the last three years.

“We have not heard of EOTs been issued under housing ministers before this,” he said.

http://www.freemalaysiatoday.com/category/nation/2017/03/04/housing-ministrys-extension-of-time-on-projects-irrational/

‘But Rahman, court says you had no power to do so’
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Minister Abdul Rahman Dahlan’s explanation that he acted within his powers as local government, housing and urban wellbeing minister in the BHL Group of Companies case does not hold water as the court found otherwise, Petaling Jaya Utara MP Tony Pua said.

Rahman, who is now Minister in the Prime Minister’s Department, is accused of abusing his power in his previous cabinet post when in 2014 he allowed the extension of a construction of residence complexes by 12 months, relieving BHL of paying delay penalties to home buyers.

“The court ruling has stated clearly that the minister has no power under Section 24 of the Housing and Development (Control and Licensing) Act, to empower housing controllers to waive or change any of the terms and conditions of the prescribed statutory agreement. What ‘power’ is the minister harping about?

“What is, however, most important, is the fact that Rahman had insisted that his decision was based on the ‘merits’ of the case.

“However, in his statement, the minister failed to specify even a single instance of such a ‘merit’ to justify his decision, which had rubbed salt onto the wounds of the house-buyers,” Pua said.

In a police report filed on Wednesday, Penang Deputy Chief Minister II P Ramasamy alleged that Rahman abused his powers by extending the construction period after receiving a letter signed by Fatimah Begum KA Abdul Kader from BHL.

Fatimah is attorney-general Mohamed Apandi Ali’s wife. Apandi was appointed AG in 2015.

Ramasamy also said Faridah Begum had misrepresented herself as a director of BHL Group of Companies.
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High Court judge Hanipah Fakirullah, in allowing a judicial review application by 71 house buyers last Tuesday, said the minister’s decision went against the Housing Development (Control & Licensing) Act (Act 118).

https://www.malaysiakini.com/news/374465?utm_source=dlvr.it&utm_medium=twitter

3 March 2017

47m47 minutes ago

Rahman Dahlan denies abusing power as housing minister
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Minister in the Prime Minister’s Department Abdul Rahman Dahlan has denied abuse of power in granting an extension of time (EOT) for the construction of condominium projects by BHL Group of Companies.

“In the particular case referred to by DAP, there is no abuse of power when I was KPKT minister.

“The decision I took was based on the powers clearly given to KPKT minister as stated in Act 118 (Housing Development (Control and Licensing) Act 1966),” said Abdul Rahman, who was Urban Wellbeing, Housing and Local Government Minister (KPKT).

He added that the decision in granting EOT was based on merit and was not influenced by support letters.

https://www.malaysiakini.com/news/374364?utm_source=dlvr.it&utm_medium=twitter

2 March 2017

..

Mar 

My answer to DAP’s allegation of abuse of power on EOT issue.

Press Statement by Datuk Seri Abdul Rahman Dahlan
Minister in the Prime Minister’s Department

3rd March 2017

1. I refer to the press statement dated March 1st 2017 by YB P. Ramasamy the Deputy Chief Minister of Penang.

2. As a background, one of the main functions of Ministry of Urban Wellbeing, Housing and Local Government (KPKT) is to ensure a sustainable housing industry.

3. We have learned from the lessons of 1980’s where many housing projects were abandoned and buyers were left in the lurch. It was economic crisis of national proportion.

4. Therefore in 1989, Parliament amended Housing Developer Act (Act 118) to address many issues plaguing the housing industry including paving way for the provision of extension of time (EOT) regulation to put a lid to the widespread of abandoned projects at the time. Since then, the country has seen a significant decrease in abandoned housing projects.

5. Under the new regulation, if a developer faces delays due to circumstances beyond his control (unexpected weather such as flooding, new regulations by authorities such as stop orders or policies pertaining to supply of construction materials and workers), the developer can apply for EOT from the government. Upon receiving the application, KPKT officers will determine if the circumstances facing the developer are genuine or otherwise. This includes construction site inspection, producing technical report and conducting financial due diligence of the company.

6. Other stringent parameters will also be taken into account such as analysing cash flow of the project, developer’s ability to complete the project, progress, size and phases of the project and the number of purchasers involved.

7. After all these factors being considered, the following questions are the most important and difficult to be answered. Will the housing project be abandoned by the developer if the EOT is not granted? Will the house buyers be in worse off position if that happens? Will it be less painful for the house buyers if they waive their right to compensation now instead of losing the house all together in case the housing project is abandoned later?

8. These are naturally difficult questions because they involve the interest of the buyers. No one takes pleasure in depriving honest and hardworking house buyers of their right to compensation due to delay in getting their houses.

9. The government needs to balance between the right to compensation and the possibility of the house buyers themselves getting into much serious problem if the housing project is abandoned. Even the banks and construction materials suppliers will face serious trouble if housing projects are abandoned. Other businesses catering for household items such as electronics, electrical and furniture will also be affected which could lead to potential lost of jobs in those businesses.

10. In cases where the appeal involves high-end housing projects such as the one in question – the house buyers will be in even more precarious position because of the government’s rescue policy only applies to abandoned low-cost housing projects.

11. So the responsibility of KPKT minister in considering appeal is to balance each stakeholder’s interest including suppliers, financial institutions, developers and the buyers.

12. In the particular case referred to by the DAP, there is no abuse of power when I was KPKT minister. The decision I took was based on the powers clearly given to KPKT minister as stated in Act 118.

13. I believe the DAP leaders used the High Court decision as the basis for their highly defamatory conclusion. This basis will be challenged as KPKT will be appealing the verdict.

14. In respect of support letters, I can assure the public that all EOT applications are approved based solely on merit. No support letters can supersede the stringent procedures in approving the EOT applications. In fact, support letters have no value in determining the approval. Those letters, at best, are just formalities and pleasantries.

15. By the way, EOT application is not only unique to the federal government alone. It is interesting to know if there are contractors who have been granted EOTs in Penang too.

16. Will the DAP Penang State government, to which YB P. Ramasamy is a part of, categorically deny that they have issued EOTs to any contractors since 2008?

..

Police reports filed over housing issue, big names roped in

Susan Loone     Published 2 Mar 2017, 12:42 pm

Two police reports have been lodged in Penang against minister Abdul Rahman Dahlan and Faridah Begum KA Abdul Kader, the wife of attorney-general Mohamed Apandi Ali.

Revealing this at a press conference yesterday, Penang Deputy Chief Minister II P Ramasamy said the reports were on alleged abuse of power when Rahman helmed the Urban Wellbeing, Housing and Local Government Ministry.

As for Faridah, it was over the allegation of misrepresenting herself as a director of BHL Group of Companies.

Ramasamy asked if Apandi would be willing to initiate charges against those involved if the allegations were true.

“Will the AG charge the board of directors of BHL if it is found that they had misled the minister?” he asked.

Malaysiakini is unable to independently verify these allegations, and has contacted Faridah, Apandi, Rahman and BHL for comment and is awaiting their responses.

https://www.malaysiakini.com/news/374238

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As a matter of fact, such a decision should not have been made in the first place. As a public servant serving the rakyat, the minister must prioritise the interests of the people at all times, instead of making decisions that may jeopardise their rights and interests.

2h2 hours ago

Protecting the rights of housebuyers

By Sin Chew Daily

Two years ago, then urban well-being, housing and local government minister Abdul Rahman Dahlan approved the application by a housing developer to extend the delivery deadline for several of its condominium projects in the Klang Valley and Johor.

As a result, housebuyers were unable to claim compensation for late delivery. The housebuyers subsequently brought the case to court to challenge the minister’s decision.

On Monday, the High Court delivered good news to the housebuyers by issuing a verdict favourable to them, by ruling that Rahman’s decision to extend the delivery deadline was invalid.

At the same time, the court also ruled that the urban well-being, housing and local government minister had no right to extend property delivery deadlines.

The benchmark verdict allows the affected housebuyers to claim their due compensation from the developer. This means their interests are now fully protected by the law, and will not be affected by the intervention of the minister.

http://www.freemalaysiatoday.com/category/opinion/2017/03/02/protecting-the-rights-of-housebuyers/

1 March 2017

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Will the AG investigate his own wife, asks Ramasamy

March 1, 2017

DAP members lodge police report against former housing minister and wife of attorney-general following yesterday’s landmark ruling on compensation to house buyers.

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GEORGE TOWN: Will the attorney-general investigate his own wife for alleged misrepresentation, DAP’s P Ramasamy asked today, following news that the AG’s wife purportedly lobbied for an extension of time on a condo project, from a federal minister.

Ramasamy said Batu Kawan DAP leaders Satees Muniandy and P David Marshel had lodged police reports in Bukit Mertajam yesterday, urging cops to investigate the AG’s wife for cheating.

Two days ago, the Kuala Lumpur High Court ruled in favour of 104 buyers of a condominium on Jalan Kuchai Lama who had sought compensation for late delivery of their units.

The buyers sought to nullify a 12-month extension given by the housing minister to the condo’s builders. Under the extension, the builders were given 48 months to deliver the units, from 36 months earlier.

Former housing minister Abdul Rahman Dahlan granted the extension, following a letter from a person claiming to be the director of the developer company, BHL Construction Sdn Bhd (BHL).

Yesterday, DAP parliamentary leader Lim Kit Siang in his blog claimed a person by the name of Faridah Begum K A Abdul Kader was the person who had written on behalf of BHL. Lim added that Faridah was the wife of AG Mohamed Apandi Ali.

Lim said according to the Companies’ Commission records, Faridah was not listed as a director of BHL.

Ramasamy asked how Faridah could act on behalf of the company when she was not a director.

“First, it would be interesting to speculate whether AG Mohamed Apandi Ali would be willing to investigate and take action against his wife if these allegations are true.

“Second, will the AG direct his officers to file charges against Rahman if he had abused his ministerial powers to accommodate the private and selfish interests of BHL?

“Third, will the AG charge the board of directors of BHL if found that they had misled the housing minister?” Ramasamy asked in a press conference at Komtar here today.

http://www.freemalaysiatoday.com/category/nation/2017/03/01/will-the-ag-investigate-his-own-wife-asks-ramasamy/

27 Feb 2017

Feb 27

Court rules minister’s order for extension of time ‘invalid’

KUALA LUMPUR: The High Court today set aside the order by the urban wellbeing, housing and local government minister to give a 12-month extension to a developer to complete his project.

Justice Hanipah Farikullah, who allowed the judicial review application by 104 house buyers, said the minister’s decision to rely on a regulation to allow the extension was against the Housing Development (Control & Licensing) Act.

“The application by the house buyers to quash the minister’s order is hereby allowed,” she said.

BHL Construction Sdn Bhd was involved in the construction of a condominium in Jalan Kuchai Lama here where 104 plaintiffs had entered into a sale and purchase agreement with them.

One of the conditions of the agreement required that the developer hand over vacant possession within 36 months or be liable to pay a penalty for late delivery to the buyers.

The developer failed to complete and hand over the units to the 104 purchasers and wrote to the Controller of Housing under the ministry for an extension of time. The appeal was rejected.

The developer then appealed to the minister who, on Nov 17, 2015, allowed an extension of 12 months.

That decision would have allowed the developer to hand over vacant possession to the buyers from 36 months to 48 months.

Aggrieved, the purchasers sought legal remedy in the courts last year.

http://www.freemalaysiatoday.com/category/nation/2017/02/27/court-rules-ministers-order-for-extension-of-time-invalid/

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1 Response to Fall out for Rahman Dahlan and AG’s wife from the BHL Construction Sdn Bhd verdict?

  1. Pingback: Close on the heels of Rahman Dahlan and BHL comes a High Court Judge decision: Sabah minister contravened regulations by granting developer an extension… | weehingthong

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