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Abandoned MCLI project: Purchasers Action Committee to lodge a new police report on coming Sunday


Media Comment
- after meeting the Malaysia China Light Industrial project Purchasers Action Committee
by
Kerk Kim Hock

(Petaling Jaya, Thursday):  The Malaysia China Light Industrial Project Purchasers Action Committee met yesterday and decided to lodge a new police report against the former developer of the Hosing project..

On 10.11.2002, the Committee Chairman, Yang Chow Liang, had lodged the following report:

" I, Yang Chow Liang, IC: 690926-04-5175, of 10, Pengkalan Rama Tengah, 75100 Melaka, hereby wish to make a police report against the former developer of the residential project of the Malaysia China Light Industrial City, Bukit Rambai Park Sdn Bhd.

On 26.11.1997, I had signed a Sales and Purchase agreement with Bukit Rambai Park (vendor) and Sierraview Sdn Bhd (proprietor) to purchase a piece of land distinguished as PT No 5550 together with a single storey terrace house priced at RM 79,000.

I had paid the following amount to Bukit Rambai Park Sdn Bhd;

1.. RM 7,900.00 being 10 % of purchase price (receipt no .1014 dated 30.9.97)
2.. RM 6,000.00 being partial second claim (receipt no.1726 dated 15.8.98)
3.. RM 1,900.00 being balance of second claim (receipt no.1727 dated 15.9.98)
4.. RM 200.00 being differential sum (receipt no.1728 dated 15.9.98)
5.. RM 69.26 being interest charged (receipt no.1729 dated 15.8.98)


I had also paid RM 200 to Shareena Abdullah & Lim (Advocates and Solicitors) on 4.11.97 being disbursement fee for Sales and Purchase agreement. (Receipt no. 0447)

Later, I and other purchasers came to know that the whole project (both the residential and industrial development) had stopped work in 1999.

Subsequently, a Purchasers Action Committee was formed in year 2000. I was elected as the Chairman. The two advisors are Kerk Kim Hock, DAP Member of Parliament for Kota Melaka and Lim Guan Eng, former Member of Parliament for Kota Melaka.

In the Committee's meetings with the Receiver and Manager (Hals and Associates) appointed by the Arab Malaysian Bank Berhad, we were informed that about 200 residential project buyers and about 300 industrial land purchasers were affected by the work stoppage. The residential buyers had paid about 30 % of their progress payment totaling about RM 4 million to Bukit Rambai Park Sdn Bhd.

We were also informed that any revival plan to rescue the residential project would involve the application of a new developer's licence as Bukit Rambai Park Sdn Bhd was found not to possess any valid developer's licence.

The Receiver had decided to make Sierraview the new developer and Sierraview had in August this year successfully obtained a developer's licence from the Housing Ministry.

All the affected buyers of this residential project are now required to sign a new Sales and Purchase Agreement with Sierraview, the new developer because the previous Sales and Purchase Agreement signed with Bukit Rambai Park have been declared null and void.

Although the new developer has taken into credit all the progress payments already paid to Bukit Rambai Park Sdn Bhd, all affected buyers have suffered financially and emotionally due to the work stoppage.

I, on behalf of the Purchasers Action Committee and myself would like to make this report to call on the Police to carry out full investigations as Bukit Rambai Park Sdn Bhd had possibly committed a few offences because

1.. it did not obtain a valid developer's licence when it engaged in housing development
2.. it had signed Sales and Purchase agreement with about 200 purchasers when it did not possess any valid developer's licence
3.. it had collected about RM 4 million from the purchasers when it did not possess any valid developer's licence
4.. it did not open a Hosing Development Account as required by the laws

This is my report."

 

Yang had received a letter from the Police, which informed him of the result of investigation.

The letter contained 4 key sentences which read as follows:

1.. Kami telah merujuk kepada Kemeterian Perumahan dan Kerajaan Tempatan
2.. Setakat ini elemen tipu tidak wujud kerana projek berjalan
3.. Kes tipu wujud jika pemaju mengambil wang dan terus menghilangkan diri
4.. Kami akan buat semakan lanjut dari pihak berkenaan dalam beberapa perkara.


The Committee was shocked to read the Police's reply which is totally illogical and unacceptable.

The abandoned project (housing) is being revived by the Receiver and Manager appointed by the Bank, what has this to do with the former devoloper who is the subject of police report?

Does this mean that so long as someone else revives the project, the former developer can be exempted from any investigation or absolved from any responsibility of the alleged offences made against him?

What logic is there for the Police to say that element of fraud only exists if the developer absconds with the money collected? Why must disappearance be a basis whether a crime of fraud has been committed?

If such are the criteria used by the Police in their investigations, not only the police image will be tarnished, there will also be erosion of public confidence in the Police investigations.

The Committee will therefore lodge a second report at11 am this coming Sunday to call for a fresh and thorough investigation.

 

(28/11/2002)


* Kerk Kim Hock, DAP Secretary General & MP for Kota Melaka