Concern over govt housing loan shift

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KOTA KINABALU: Cuepacs Sabah said the Government’s plan as unveiled in the Budget 2012 by the Prime Minister to switch government housing loan to commercial banking institutions has caused concern among civil servants.

“In fact we have been receiving many queries about the mechanism on how this plan will be implemented,” said Cuepacs Sabah secretary Laurence Vun.

He said: “As with the existing terms of the Treasury whereby civil servants can apply for house loan based on the sum eligibility of the respective categories without much conditions placed on their actual monthly salary.

“In recent meetings with the Chief Secretary to the Government, Cuepacs had been assured that the implementation mechanism is being finetuned before bringing it for discussions with Cuepacs.

“While this mechanism is being finalised Cuepacs Sabah wants the Government to ensure that this right to a government house loan for civil servants will not be taken away.

“One of the perks of a civil servant is being able to enjoy this house loan facility. It is not just about enjoying a low interest rate of 4%. Any attempt to deny this facility to a civil servant will surly cause much disatisfaction.”

Vun said civil servants who have chosen to obtain loans from commercial banks are facing much difficulties.

“Based on feedback received there are many who have applied for a full house loan failed. This would not be in line with Cuepacs stand that each civil servant should at least be able to own a house before retirement,” he said.

Vun said there are also those whose applications were approved but the amounts given were far too low for them to meet the purchase prices.

“It is our stand that whatever mechanism is to be implemented the Government will look into these concerns of civil servants in Sabah where the prices of houses are beyond the financial means of most civil servants.

“Perhaps the civil servants in Sabah should be given the right to enjoy existing house loan facility with the Government and not through financial institutions.

“Feeling the pulse of the workforce in the civil service will certainly go a long way towards creating a harmonious industrial relations,” he said.

Vun said Cuepacs Sabah invites concerned civil servants to provide input and feedback through their fax no. 088242127 and email: [email protected].