The developers behind abandoned housing projects should be charged and punished severely, said an opposition politician.

Penang DAP secretary Danny Law Heng Kiang said these errant developers should be imprisoned, slapped with hefty fines and have their licences revoked.

In order to protect the rights, interests and benefits of innocent purchasers, he said the federal government should initiate immediate steps to amend the Housing Developers (Control and Licensing) Act 1966.

Only by introducing stricter laws and punishment, Law believes that the government can check on errant developers, who take advantage of the leniency in the law by abandoning or delaying projects, citing mainly financial reasons.

"At present, the law is neither adequate nor sufficient to check and punish errant developers.

"The law also fails to safeguard the purchasers' interests. If abandoned project developers are sentenced to jail, fined heavily and blacklisted, it will teach them and other developers a stern lesson," he told malaysiakini .

Such laws, he said, would also protect the image and accountability of the industry. He compared the abandoning of housing projects to the once popular 'get rich quick' scheme.

Perpetrators of the 'get rich quick' scheme collected millions in public investment before fleeing with the money while developers obtained millions through bank loans before abandoning the projects.

In both cases, the law failed to punish the schemers.

"In the end, innocent men and women suffer financially, emotionally and psychologically," said Law.

Financial viability

The DAP leader also called on local governments to create a mechanism to screen financial viability and strength of developers before approving them to undertake projects.

"Had local councils made financial strength and viability of developers a pre-condition to approve projects, Penang would not have seen so many abandoned projects," said Law.

Among the projects abandoned in Penang are Taman Cemerlang in Bandar Baru Air Itam, Majestic Heights (Phase 2 and 3) in Paya Terubong, Fettes Villa in Tanjung Tokong, Taman Crystal in Bagan Jermal, Taman Desa Aman in Relau, Taman Penang Jaya in Bayan Baru and PPH Resort in Sungai Ara - all on the island; and Taman Pekatra Indah in Simpang Empat, Taman Suria in Nibong Tebal and Taman Abdullah Fahim in mainland Taman Abdullah Fahim in the prime minister's Kepala Batas Parliamentary constituency was named after Abdullah Ahmad Badawi's grandfather.

Law said the state government should negotiate with the federal government's Syarikat Perumahan Nasional Berhad (SPNB) to revive all abandoned projects.

He told this after leading a group of disgruntled Taman Desa Aman house buyers to protest in front of developer Binanusa Sdn Bhd's office in Pulau Tikus, George Town on Saturday.

Later, several disgruntled house buyers stormed the office and confronted a Binanusa manager, who wanted to be known only as Eng.

The buyers demanded to know when would construction resume and the houses be ready for occupation.

When Eng gave assurance that Binanusa would resume the project by this year and complete it by December 2008, the frustrated buyers demanded him to give them a written assurance stipulating the date of the imminent completion.

Eng however refused to give a written assurance and insisted only on a verbal assurance that the company would keep its promise to ready the project.

Taman Desa Aman project, comprising two blocks of 518 low-medium cost flat units, commenced in Relau in 2000 and was scheduled to be ready for occupation in 2003.

However, the 392-unit Block A was completed 75 percent while only piling works had been carried out for the 266-unit Block B when the project was abandoned four years later.

The Local Government and Housing Ministry confirmed that the Taman Desa Aman project had been identified as an abandoned private housing development in Penang since 2005.

Many buyers have been servicing their bank loans for between the past six and seven years for houses that had been abandoned.