GEORGE TOWN, Aug 1 — The Penang government should provide a special fund for residents evicted from traditional villages here, Penang Umno said today.

State Opposition Leader Datuk Jahara Hamid said the government should have learned this following the Kampung Mutiara issue.

“The Penang state government must also come up with a clear housing development policy using this Kampung Mutiara issue as a precedent to ensure traditional villages like this do not disappear just like that and the villagers are not evicted without any compensation,” she said in a press conference at the Penang International Airport today.

She pointed out that the landowner of Kampung Mutiara used a loophole in the state government’s current housing policy that only requires developers to compensate existing residents before evicting them, as planning approval will not be given otherwise.

“In Kampung Mutiara’s case, the landowner did not submit any plans for approval so he can evict the villagers just by obtaining a court order without paying any compensation,” she said.

She said there was no safeguard against such evictions, and claimed that other developers would follow suit.

Jahara also urged the state government to use funds from the Bumiputra Housing Trust Fund that was accumulated since 2009 to help the Kampung Mutiara residents.

“The state can use the fund to pay for the costs of relocating the residents, to buy up the two adjoining lots of land and to pay for the rental of the temporary homes for the residents pending the completion of their permanent homes,” she said.

She said Penang Barisan Nasional assemblymen will discuss with the federal government to provide funds to build homes for the Kampung Mutiara residents as long as the state can foot the costs of the land.

However, she said it was only fair that the state government also provided some funding to the residents.

Yesterday, Kampung Mutiara residents in Batu Ferringhi were again threatened with eviction, but gained a three-month reprieve after negotiations between Umno’s Datuk Ahmad Ismail, Deputy Chief Minister I Datuk Rashid Hasnon, Bukit Bendera MP Zairil Khir Johari and the landowner, Loke Leng Seak.

Ahmad said the landowner has agreed to let the residents stay for another three months as they are being offered temporary homes at a UDA Holdings flat in Tanjung Tokong.

He also said the federal government has agreed to give RM10 million while he will ask for a further RM20 million to build permanent homes for the residents in two adjoining lots of land next to Kampung Mutiara.

Most of the residents in the century-old village, in 66 houses, have been living there for a few generations.