FT MINISTER DARES PR MPS

By : HAMZAH NAZARI (MM)

FEDERAL Territories and Urban Wellbeing Minister, Datuk Raja Nong Chik Zainal Abidin has thrown down the gauntlet, challenging two Pakatan Rakyat MPs to a one-to-one public debate.

He has challenged PKR Lembah Pantai MP Nurul Izzah and DAP Petaling Jaya Utara MP Tony Pua to debate the use of money from the Employees’ Provident Fund (EPF) for a low-cost housing loan scheme.

“These impoverished people cannot get housing without help. Are they saying that these people do not deserve housing?” asked Raja Nong Chik.

“I am prepared to debate this issue with them one-to-one in front of all the residents,” he said.

He was speaking to The Malay Mail in response to the opposition party’s criticism of the utilisation of EPF funds amounting to RM1.5 billion to fund the low-cost housing scheme.

“This is a pure business transaction by the EPF with returns of 5.5 per cent guaranteed by City Hall,” said Raja Nong Chik who added that RM1.5 billion was a very small sum for the EPF.

He said that contrary to opposition claims, the loans would only go to good paymasters as City Hall had only offered them to residents who had no outstanding debts with City Hall.

The minister went on to say that the deal was guaranteed on many levels including a 20 per cent retention account held by City Hall and the EPF and City Hall too could take back the property and sell it to one of the almost 30,000 other buyers in the waiting list in the event a buyer defaulted payment for six months.

“Not more than 10 per cent will default,” said Raja Nong Chik who expects the figure to be as low as five per cent. “The loans are backed by City Hall which has RM1 billion in reserve. You cannot doubt City Hall.”

He said the MPs were mistaken in comparing the loans to the sub-prime loans which he said referred to inflated loans sold at double the property value.

“Do they even know what subprime lending is? These properties are worth double or even triple of what City Hall is asking,” he explained.

He argued that banks were reluctant to offer such small loans because it was unattractive to them and that asking Bank Rakyat, Malaysia Building Society Bhd or even Bank Simpanan Nasional to fund the loans would be akin to passing the buck.

He was confident that the EPF had done their duty before agreeing to the deal and denied the MPs’ claims that the deal was politically influenced.