Govt Spent Rm172m To Compensate Failed Pr1ma Projects Minister


 



PARLIAMENT | The Housing and Local Government Ministry will not request for additional allocations to fund compensation payments linked to cancelled 1Malaysia Housing Programme (PR1MA) projects.
Housing and Local Government Minister Zuraida Kamaruddin said there are 32 cancelled PR1MA projects and the government had so far spent RM172 million on compensations for 17 of them.
"For now 17 (projects) we have paid compensation in terms of pre-development, working costs, and others, amounting to RM172 million.
"The others (15 projects) are still in discussion. We have also successfully brought down the amount by 30 percent of claims (for compensation)," she said in response to a supplementary question from Chow Kon Yeow (Harapan-Tanjong).
"For the others, we will not ask for more allocations from the government to manage existing debts and future financing.
"We cut our losses, we sell the existing homes, we cover up the debts, and InsyaAllah by 2023 we can ensure that all PR1MA debts can be paid off," she said.
Chow had asked how much funding was needed by the government to settle all PR1MA-related compensation claims from contractors as well as buyers of the cancelled projects.
The cancelled projects were part of the previous Pakatan Harapan federal administration's review of all ongoing development projects that had only progressed less than 15 percent since their start dates.

Aside from the cancelled projects, Zuraida said there are still 62 ongoing PR1MA projects nationwide, as well as other low-cost housing schemes under the ministry's purview.

"We will use the productive land to build new houses, working together with the National Housing Department, Syarikat Perumahan Negara Berhad (SPNB), Malaysia Civil Servants Housing Programme (PPAM), and PR1MA.
"We will cut our losses and bring back their money," she added.
Last month, financial daily The Malaysian Reserve quoted a source familiar with the matter who said PR1MA Corp Malaysia is expected to fork out up to RM200 million for compensation to contractors of the cancelled projects. - Mkini


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