The national housing company owes between RM250 million and RM300 million to 35 Class A Bumiputera contractors hired to develop 35 projects across the country, involving 35,583 low-cost and affordable units.
A source told Business Times that SPNB will have to look for its own funds or loans to pay the contractors the remaining sum.
A task force, headed by the MOF, has been set up to look into the matter as the contractors have not been paid for the houses built since late last year.
"There is an oversupply. SPNB had overlaunched the projects when demand was low. It is unable to pay the contractors as sales are not moving. People are not buying because the houses are in rural areas, far from basic infrastructure," the source said.
It is understood that SPNB's management, headed by new managing director Kamarul Rashdan Salleh, is re-strategising the company's business model.
"SPNB will guarantee that the 35 projects will go on. It will work out a plan to resolve the issue amicably," the source said.
In addition, SPNB has received some RM200 million from the government to build houses across the country under the affordable housing and "Rumah Mesra Rakyat" programmes.
The latter is for families with a household income of RM1,500 and who have land on which SPNB can build them a house.
The landowners can take loans from SPNB with minimal monthly payments.
The government will also subsidise one-third of the construction cost.
By Business Times (by Sharen Kaur)
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