UNAUTHORISED RENOVATIONS OF HDB FLATS

Mr Chng Hee Kok asked the Minister for National Development if he will enhance the penalty for unauthorised renovations of Housing and Development Board flats which endanger public safety.

Mr Lim Hng Kiang (for the Minister for National Development): Mr Speaker, Sir, the question by the hon. Member for Tampines GRC presumably arises from the recent incident at Block 212 Jurong East Street 21 where an unlicensed contractor damaged the structural column of the block in the process of carrying out renovation works. The contractor had been engaged by the new buyer of the flat, with the consent of the existing lessee. The renovation works were unauthorised as they were carried out without HDB's prior approval.

My Ministry is investigating the matter. If appropriate, we will take action against the errant parties (lessee, buyer and contractor) under section 5 of the Building Control Act for carrying out unauthorised building works. The maximum penalty for the offence is one year's imprisonment and a fine of $50,000.

Meanwhile, HDB has taken action against the contractor by reporting the case to the Police. The Police are considering charging him under section 288 of the Penal Code for knowingly or negligently pulling down a structural column of a building without sufficient safeguard against any probable danger to human life. Section 288 provides for a maximum penalty of 6 months' imprisonment and a $1,000 fine.

Mr Chng Hee Kok (Tampines GRC): Sir, under the present legislation, is the owner or the contractor of such unauthorised renovations compelled to pay for consequential losses suffered by the HDB?

Mr Lim Hng Kiang: Under the present regulations, the lessee has to seek HDB's permission before carrying out renovation works. In this case, when the works are carried out without the approval of the HDB, HDB has two options against the owner. First, it will require the owner to make good the damages and all costs arising from the damages. The second action against the lessee will be to compulsorily acquire the flat if the lessee does not pay the damages. As for action against the contractor, in this case it is an unlicensed contractor, action will be taken against him both under the Penal Code as well as under the Building Control Act. If he were a licensed contractor carrying out unauthorised works, HDB has measures to debar the contractor as well as impose fines to recover the cost.

Mr Chng Hee Kok: In other words, is the Minister of State saying that it is a civil matter between the HDB and the flat owner? The second question is: are contractors of HDB flats compelled to furnish insurance cover before they undertake any work in HDB flats?

Mr Lim Hng Kiang: Let me clarify. HDB's action against the lessee is not a civil matter. The lessee is a lessee of HDB and under the lease terms he has certain obligations, one of which is to seek permission for any renovations to his flat. In this case, the lessee did not seek permission and the HDB would take action against the lessee by making him pay for the damage and the subsequent costs of repairing the column, failing which HDB has the power to acquire his flat. On the question of whether the contractors should take up insurance cover, we have left it to the contractors themselves. In any business, they know the risks they are in, and if they think they need to take up insurance cover, we leave it entirely to the business concerned.

Mr Chng Hee Kok: Sir, I am referring to the consequential damages. In other words, the Minister of State is saying it is not a civil matter. The HDB can claim in court for consequential damages. In view of the large number of renovations being carried out in HDB flats every year, does this concern not warrant further study of the current legislation on this aspect of HDB flats?

Mr Lim Hng Kiang: As the Member has said, there are many thousands of renovation works being done, and these have always been carried out well within the regulations. They have been done in accordance with the regulations. We have had very little problems. This is the first case where we have a very unusual combination of factors. First, the flat was renovated during the resale transaction. So we have to take action against both the new purchaser as well as against the original lessee. Second, the contractor is an unlicensed contractor. So we have to take action against him under the Building Control Act as well as under the Penal Code. HDB is also exploring whether we should take action against the parties concerned through civil action as well.

Mr Chng Hee Kok: Will the Minister of State say that the Hotel New World incident is also an unusual event?

Mr Lim Hng Kiang: If the Member remembers, we had a Commission of Inquiry and the Building Control Act was put in place precisely because of the lessons learnt from the Hotel New World's case.