A housing developer has issued a letter of demand to malaysiakini seeking an unconditional apology and a RM10 million compensation over an article relating to an unfinished condominium project in USJ 19.

In the letter of demand dated May 16 and received by malaysiakini today, developer Sanjung Utama wants the apology to be printed in The Star and Sin Chew Jit Poh. The developer also wants the news website to give an undertaking not to publish any further articles on the matter.

The letter, sent by Klang-based legal firm CL Chin and Associates, said that certain portions of the article were "malicious and [an] unjustifiable attack on the personal integrity and reputation" of Sanjung Utama.

Malaysiakini has been given until Friday to respond to the demands failing which legal proceedings will be initiated against it.

The report in question, entitled Consumers group want errant developer to return money, dated April 23, was based on a press conference by consumer activist Dr Jacob George.

George had demanded that the developer should facilitate a payback scheme to the affected housebuyers of the Rhythm Avenue project — a 33-storey mixed development complex — which has stalled.

George, who is the president and legal adviser of the Consumers Association of Subang and Shah Alam, had also said that the developer had failed to meet its schedule to hand over vacant possession of the properties by last December.

He claimed that the root cause of the problem was possibly due to foul play and misconduct involving the project's professional bodies.

His press conference was also reported in other news dailies.

George, too, was named in the letter of demand and was similarly accused of maliciously and falsely making allegations against Sanjung Utama.

Architects board to investigate

In a related development, the Board of Architects Malaysia (BAM) had ordered the architects behind the Rhythm Avenue project to explain George's claims.

George, on behalf of several purchasers, had written a complaint letter to BAM on May 14, asking the board to investigate allegations that the architects made premature certification, enabling the banks to release up to 95 percent of their loans while construction was stalled.

Three days later, the board sent a letter to the developer's architects seeking an explanation.

"Before we take action, we would like to hear your explanation on the matters raised. You are also requested to submit a letter of your appointment as the architect of the project," said Esah Abdullah, the board's executive secretary, in the letter.

The BAM is the governing body for all registered architects and possesses enforcement powers to act on.

George also told malaysiakini today that he will be submitting a letter to the Bank Negara soon to seek an investigation into why the bankers associated with the project had failed to inform the purchasers on the scheduled payments given out to the developer.