posted 23-04-2002 07:44 PM            

Consumers group wants errant developer to return money
Yap Mun Ching

A Subang Jaya consumers association today warned the errant developer of a failed housing project in USJ 19 to meet with buyers and facilitate a payback scheme or the matter will be brought up for resolution by higher federal authorities.

The development project to construct apartments and shops in USJ 19, called ‘Rhythm Avenue’, raised the concern of buyers when developer Sanjung Utama Sdn Bhd failed to meet its schedule to hand over vacant possession of the properties by last December.

Dr Jacob George, who is the president and legal adviser of the Consumers Association of Subang and Shah Alam (Cassa), said the matter will be raised with Deputy Prime Minister Abdullah Ahmad Badawi.

He said the root causes of the problem point to possible foul play and misconduct involving the project’s professional bodies.

“If the developer or its agent does not get in touch with Cassa to propose redress to the buyers, we will bring the matter to the deputy prime minister and release evidence gathered which will incriminate a lot of individuals and companies, including a second board company,” George told the press this afternoon.

According to him, some 40 buyers appealed for assistance from Cassa to find out the progress of the project.

“Some of the buyers are young couples who have borrowed money to purchase the units. They no longer have confidence in the developer and they want their money back now, with interest, to purchase property elsewhere,” said George.

Inform buyers

In relation to the project, George said developers who require additional time to fulfill their contractual obligation to hand over the properties must inform buyers of the delay.

However, he said no correspondence has been made and purchasers seeking an explanation from Sanjung Utama got the runaround instead.

Several purchasers have complained of deliberate action by the developer to avoid them.

“Those who complained to relevant authorities have even been told (misleadingly) that buyers of serviced apartments are not protected under the law,” said George.

According to him, the developers have already collected 95 percent of the purchase price from banks financing the purchases of some 880 serviced apartment units within the project area.

However, all signs at the development site suggest that the project has been abandoned by the developer, said George, who described the project as being only 65 to 70 percent completed.

“The site is fenced up and there is no visible presence of any construction work. The signboard which is supposed to state the development project is also broken,” he said, adding that the area is also overgrown with weeds.

George said when purchasers approached Subang Jaya state assemblyperson Lee Hwa Beng, they were informed that the developer was seeking a financier for the project.

Misleading statements

“But the developer has already collected 95 percent of the cost of the property. Why should they need to apply for alternative financing?” asked George.

“There is clear evidence too that certain local politicians are aware of this and they have done nothing to help. Some are even issuing statements which are misleading or are blatant lies,” he added.

In addition, several other professional bodies should also be queried, such as the architects in charge of the project, as they had issued the letter allowing the developers to collect 95 percent of the purchase price as early as three to six months ago, said George.

He urged Subang Jaya Town Council (MPSJ) President Ahmad Fuad Ismail to work with Cassa to resolve the problems faced by purchasers of the properties.

He added that a solution should be found immediately as the same developer is also responsible for another project named ‘Newgate Avenue’ in neighbouring USJ 21.

Meanwhile, Lee and Ahmad were unreachable for comment. Attempts to contact Sanjung Utama were also unsuccessful.

Buyers who wish to contact Cassa may do so at 012-366 4444 or 017-30 300 30.

SOURCE: http://www.malaysiakini.com/news/200204230015352.php

posted 23-04-2002 09:55 PM         

And so we are back with another controversy!

U have our support and pray u will be able to assist the innocent purchasers.

Heh thats a good idea - your call to MPSJ YDP Fuad to work with CASSA & U!

Perhaps 2002 will spring some good after all!

posted 24-04-2002 12:01 AM            

#2: How Lee Hwa Beng keeps on shifting goal-posts for developer
#3: Web of mysteries around Sanjung Utama

posted 25-04-2002 03:29 PM            

All of us should help to inform any purchaser we know of.

posted 26-04-2002 01:51 PM         

Rhythm Avenue purchasers I am told already got a working committee working under the able direction and advice of our Dr.JG & CASSA and yet a e-mail from a know a frustrated politician is planning another press conference, another committee under him as adviser - what a joke. Probably to reassume the interest of a certain developer cum Con-tractor - Very interesting - the divide and rule policy is on again same like usj18 & 19 - if u remember.

posted 27-04-2002 10:40 AM            

A closed-door meeting for bona fide Rhythm Avenue buyers will be heald at 2.00pm, Saturday April 27, 2002 at LakeView Club (behind Subang Sheraton), Subang Jaya.

The attendees are affected buyers who have registered themselves with CASSA via hotline 012-366 4444.

The organisers of the meeting have laid down three conditions to determine only bona fide buyers attend the meeting:

1. Sales & Purchase Agreement
2. Buyers' IC (photocopy)
3. A cheque of RM500 payable to the "Consumer Association of Subang and Shah Alam)

All these 3 items will be given back on-the-spot if the attendees decide not to participate in the collective action to be briefed by CASSA president Dr Jacob George.

posted 28-04-2002 11:07 AM         

Being invited to be a independent observer at that meet I saw first a couple trying to gatecrash the meeting without the proper certifications.

They verbally abused the volunteer secretariat and tried to rerail the registration.

And only left when told to by both the organizers and the security personnel.

Prior to the comencement of the meeting several motocyclists were noted roaming the area with the handphones on.

And as expected another group emerged, this time the real, rough and tough machai types again trying to gatecrash and threatening the secretariat to call off the said meeting.

One even attempted to enter the meeting hall through the back but was detected and escorted out. He was heard speaking to his boss telling whoever on the other side that they were unable to enter the hall and asked for further instruction.

It was good the organizers have enough photographs of these machai and some were also identified by some of the purchasers who gave vital information to the organizers for the police report expected to be made.

Who are these people and who sent them to disrupt a lawful gathering?

If there were simply nothing to hide, no skeletons to emerge, no scandals to expose, why are certains politicians, con-tractors, professionals involved in the abandoned project running around like headless chickens and in fear?

Fear enough to try to send machais to thrreaten innocent buyers trying to protect their interest?

I appeal to all of you to come out strongly disapproving this kind of thugish behavior and those masterminds behind this attempt.

posted 30-04-2002 05:11 PM            

Billboards by Signage Inc is inceasing, but still no pedestrian briges at the major roads. Nobody is using the Millenium Park (I doubt the YB and YDP ever set foot there after completion). And now the road shoulders near SJ police station and along the road at USJ 2 are being dug up, and without a notice board informing us what's going on.

If there's ever a petition, count me in.

posted 18-05-2002 11:22 AM            

Five buyers lodge report against developer
By LOONG MENG YEE

ABOUT five buyers who bought service apartments in the troubled Rhythm Avenue project in USJ19, Subang Jaya, lodged a police report at the Selangor police headquarters here in Shah Alam recently.

They were assisted by Consumers Association of Subang and Shah Alam (Cassa) president Jacob George, who also acted as the group’s legal adviser.

The complainants urged the police to investigate the developers of Rhythm Avenue project which they claimed had failed to hand over vacant possession of the properties to buyers in January.

“These buyers had paid more than 95% of the progress payments to the developer Saujana Utama Sdn Bhd.

“However, the construction was said to have stopped for over eight months,” said Jacob.

An affected buyer, Annie Teoh, said she came to know about the service apartments offered under the Rhythm Avenue project in 1998 after reading about it in leaflets distributed in the area.

The apartments were priced between RM90,000 and RM500,000. She decided to invest in a unit thinking it would be a worthwhile buy with potential for good returns.

She duly paid all the progressive payments until she noticed the project stopped last September.

“Inquiries with the developer did not produce satisfied answers. Some said the project faced technical problems, others said it was labour problems and there was even mention of financial problem,” said Teoh, a secretary.

She added that she had lost faith in the project and wanted her money back plus interest.

Another buyer, Low Cheng Cheng, an account supervisor, said she had bought a 600sq ft service apartment for about RM120,000.

“It is a major purchase and it is very heartbreaking when the project became problematic. I do not want to lose the money paid because all of it is hard earned,” said Low.

The problem of the Rhythm Avenue had been highlighted before. The developer issued a press statement recently apologising to the buyers for the delay in handing over the properties.

In the press statement signed by director Yap Kwee Chai, the developer said the technical difficulties encountered by the company had been solved.

Yap said the company was aware of the difficulties suffered by the purchasers and assured buyers that they were looking at the form and quantum of compensation.

posted 19-05-2002 01:31 PM            

You might want to know your rights, as spelt out by the Bar Council.

* * *

THE STAR
Saturday, August 18, 2001

Developers and buyers cannot hire same lawyer

PETALING JAYA: Lawyers representing a housing developer cannot act for the purchasers of the project at the same time, the Bar Council said yesterday.

Its chairman Mah Weng Kwai said that lately, there had been advertisements in local newspapers promising purchasers "subsidised" or even "free legal fees."

"This is especially so during the launch or promotion period of a project, so long as the purchasers agree to allow the developer's panel of lawyers to prepare the sale and purchase agreement.

"In actual fact, the lawyers are acting for the latter, not the purchasers. The developer has a duty to pay for its own lawyers' fees.

"Therefore, there is no issue of 'subsidy or free' legal fees since the purchasers are not liable to pay for these," he said in a statement yesterday.

"Such an offer may be misleading and may not represent the actual situation," he stressed.

Mah pointed out that under Section 84(1) of the Legal Profession Act, a lawyer was not allowed to represent both the developer and the purchasers at the same time.

"It also clearly states that the developer cannot appoint lawyers for the purchasers and that they are free to appoint their own," he said.

Mah also stressed that under the law, developers and purchasers must each pay his own legal fees.

He said the fees were inclusive of charges for preparing the memorandum of transfer to the purchasers' names, and services in preparing the sale and purchase agreement.

"If the strata or individual title to the purchaser's property has not yet been issued, he may have to pay an additional sum to cover the extra work done when these are issued at a later date," said Mah.

SOURCE:
HOuse Buyers Association

posted 19-05-2002 01:44 PM            

16 August 2001

The Bar Council would like to draw the attention of the public to advertisements placed in local newspapers whenever there is a launch or promotion of a housing project by a developer.

The Bar Council often comes across a common feature in such advertisements indicating that the developer will 'subsidise legal fees' or even offer 'free legal fees' to a purchaser when he purchases any property from the developer during the launching or promotion period so long as the purchaser agrees to allow the developer's panel of solicitors to prepare the Sale and Purchase Agreement.

Such an offer of 'subsidy of legal fees' or 'free legal fees' may be misleading. It may not represent the actual situation. In actual fact, the developer's panel of solicitors are acting for the developer. The solicitors are not the purchaser's solicitors.

The developer has a duty to pay for its own solicitors' fees. Therefore, there is no issue of 'subsidy of legal fees' or 'free legal fees' since the purchaser is not liable to pay for any developer's legal fees in any event.

Section 84(1) of the Legal Profession Act 1976 ('the Act') states that an advocate and solicitor acting for the developer is prohibited from acting for the purchaser in a housing development. It clearly states that the developer's panel of solicitors cannot be the purchaser's solicitors. The developer cannot appoint solicitors for the purchaser.

It also states that the purchaser is at liberty to appoint his own solicitors to act for him when he buys property from the developer.

Section 84(3) of the Act clearly says that the developer and the purchaser must each pay for his own legal fees.

Where the purchaser appoints his own solicitors, the purchaser will pay legal fees to his own solicitors. Such fees are inclusive of fees payable for preparing the memorandum of transfer to transfer the property to the purchaser's name. The fees cover the services to be rendered for the whole transaction, including the sale and purchase agreement, as well as the memorandum of transfer.

If the strata title or the individual title to the purchaser's property has not as yet been issued, the purchaser may have to pay an additional relatively small sum to cover the extra work done when the purchaser's title is issued at a later date.

posted 22-05-2002 06:51 AM            

Related stories in the online media:

MALAYSIAKINI.COM
3:38pm Tue May 21st, 2002

Developer threatens to sue Malaysiakini, seeks RM10 mil compensation
Rhythm Avenue developer Sanjung Utama has issued a letter of demand to malaysiakini seeking an unconditional apology and a RM10 million compensation over an article relating to the unfinished condominium project in USJ 19.

The developer also wants the apology to be printed in The Star and Sin Chew Jit Poh, and demands the news website to give an undertaking not to publish any further articles on the matter.

* * *

MALAYSIAKINI.COM
7:14pm Tue May 21st, 2002

Syarikat pemaju ancam saman Malaysiakini
Syarikat pemaju perumahan, Sanjung Utama, telah mengemukan surat tuntutan kepada malaysiakini supaya memohon maaf tanpa syarat serta membayar gantirugi RM10 juta berhubung penyiaran sebuah berita mengenai projek kondominium tergendala di USJ 19.

Di dalam surat yang bertarikh 16 Mei lalu, yang diterima malaysiakini hari ini, syarikat pemaju berkenaan mahu pemohonan maaf itu disiarkan dalam akhbar The Star dan Sin Chew Jit Poh.

Syarikat itu juga mahu malaysiakini memberi jaminan tidak akan menyiarkan lagi berita-berita berkaitan perkara tersebut.

posted 29-05-2002 12:52 PM            

Now, compare what the politician said 30 days ago, and what he said 30 days later in The Star.

* * *

THE STAR Metro
Wednesday, May 29, 2002

Builder issued ultimatum

If held-back projects Rhythm Avenue and Newgate Apartments are not revived by the end of this month, the developer will have to face the 1,500 house buyers in front of the press.

Subang Jaya assemblyman Datuk Lee Hwa Beng had made this clear at a press conference he arranged to highlight the plight of the house buyers.

The projects were put on hold last December due to financial difficulties faced by the developer. Rhythm Avenue Apartment in USJ 19 was 90% complete while Newgate Apartments in USJ20 was 60% complete.

Rhythm Avenue was supposed to have been ready by November last year.

“They issued statements to assure buyers that the projects will be revived by the end of this month and claimed that all financial problems were solved.

“However until now they have not started work yet,” Lee said.

Read the full story at:
http://metro.thestar.com.my/news/2002/4/ytrhythm.html

posted 29-05-2002 05:17 PM            

www.usj.com.my has not been
a party threatened with a law suit by the
developer of Rhythm Avenue over its series
of reports in this website.

It is learnt that, so far, only Malaysiakini
and its journalist and Dr Jacob George were
served the Letter of Demand by the
developer, Sanjung Utama Sdn Bhd.

www.usj.com.my will continue to report on
the issue as it is a matter of severe public
interest.

As good citizens of Malaysia, the
administrators of this community website
will - when called for - give their fullest
cooperation to the authorities in their
investigations, right from the approval
process at the local council to knowledge in
the public domain.

posted 12-06-2002 06:32 PM            

Bar Council, Bank Negara urged to probe ‘professional misconduct’ in USJ project
Yap Mun Ching

A Subang Jaya consumers’ group has urged the Bar Council and Bank Negara to investigate several banks and solicitors involved with a stalled development project in USJ.

In a joint memorandum, the president of the Consumers Association of Subang and Shah Alam (Cassa) Jacob George said purchasers of apartments in the USJ 19 Rhythm Avenue project have alleged “professional misconduct” and “conflict of interest” in the loan facilitation, attestation and drafting of various agreements.

“There are allegations that in this mixed development project, several solicitors acted for both purchasers and the developer, thus violating Section 84 of the Legal Profession Act 1976,” said George in the memorandum delivered on Monday to both parties.

The said section states that an advocate or solicitor acting for a housing developer is not to act in the same transaction for the purchaser of the property.

“There are also allegations that end-financing banks failed in their ‘duty of care’ to protect purchasers’ interest, by releasing loans to the developer prematurely and without consulting with the borrower/purchaser,” George added.

According to him, the purchasers have alleged that although 95 percent of the payments have been released by the banks, the project has been stalled for the last 10 months and is only at 65 percent completion stage.

“In view of this, the majority of Rhythm Avenue apartment buyers have lost confidence in the present banking system which does not have ‘checks and balances’ to protect borrowers’ interest,” he said.

Police report

The Rhythm Avenue project is a mixed development by Sanjung Utama Sdn Bhd. The project raised the concern of several buyers when they were not given vacant possession of the properties this January, as stipulated on their sale and purchase agreements.

George also appealed to Bank Negara to advise banks lending to these purchasers to “stop harassing” the latter for their loan installments in view of the situation.

Meanwhile, the consumer rights activist said Cassa had lodged a police report at the Selangor police headquarters to determine the various allegations of the purchasers.

When contacted, a Sanjung Utama representative said the company’s spokesperson was unavailable for comment.

posted 21-06-2002 02:30 PM         

May Justice prevail and a plan of action be forthcoming to right the many wrongs not only in these projects but nationally thru this issue.

posted 27-06-2002 10:27 AM            

Buyers still looking for answers
By CHIN MUI YOON

SOME 60 buyers of the troubled USJ 19 Rhythm Avenue apartments will hand a memorandum to the Prime Minister to state their problem over the project.

The Rhythm Avenue case has been repeatedly highlighted in the press as the project is still not completed as promised by November 2001. Over 1,500 buyers are still waiting for their key to the property, which they paid between RM80,000 and RM550,000 for each unit.

The developer Sanjung Utama Sdn Bhd has, in a previous press statement, apologised to buyers for the delay in handing over the properties, promising that it will restart work in May 2002.

“May has come and gone and we have yet to see signs of progress,” said the Consumers Association of Subang and Shah Alam Selangor (CASSA) president and legal advisor Dr Jacob George during a closed door meeting on Saturday in Subang Jaya.

Over 60 buyers attended the meeting, of which invitations were sent to representatives of the Bar Council, developer and the Ministry of Housing and Local Government. Only two lawyers from the Bar Council were present.

“We’ve sent two letters dated April 23 and May 14 to the developer without receiving any reply,” Dr Jacob. “Most buyers have already paid up to 95% of their bank loans as progress payments. But these loans were released without the prior approval of the borrower, nor prior to a third party confirming whether that specific stage of construction has already been finished.”

“In the meantime the end-financing banks continue to release payments although the project has stalled for 10 months now,” he said, adding that 665 buyers have filed reports with him.

One of the buyers, Annie Teoh could not hide her disappointment at the absence of any representative from the developer or a visible sign of getting her money back.

“My fiancé and I purchased our apartment in November 1998 for RM90,000 with the hope of being able to move in when we marry this year,” she said.

“Our wedding just took place in June, and we’re still waiting for our own home. We’ve given up on the project, and just hope to get our money back so that we can get another place somewhere.”

“First the authorities said the delays were due to technical problems, then it was labour shortage due to the Hari Raya holidays, next it was due to financial problems. When are they going to stop giving us the runaround?” said Dr Jacob.

“No one is fulfilling the buyers’ interest. We’ve already called on the banks to suspend the direct debt of the buyers’ monthly instalments till Bank Negara, Board of Architects, Bar Council and the Commercial Crime Division have completed their investigations into these allegations,” he added.

posted 28-06-2002 11:07 AM            

The banks look at so called architect's certs. then they released up to 95% for some 880 units. wow! 880 units - surely a lot of banks are involved. also more than one branch of each bank is kena juga.

Question is - do banks simply release money cos' developer demand with a photocopy "architect cert"?

Maybe one bank policy is bad. Maybe a few branches fouled up. But if all the financiers didn't see the building not done up before letting go the loans??? Now, thats sounds funny or not? What kind of banking practice, not prudent at all.

Last time when I doing releasing bank loans, I either get borrower to confirm house progressing OK or I visit the project. I am not qualified to say the architect's cert is right or wrong. but if developer claim that the roof is ready but I do not see it then it is very obvious).

posted 29-06-2002 02:05 PM         

Yes, there has been an interesting development from CASSA's South African sources, Yes I am made to understand when daily workers cannot be paid - how can a project this magnitude ressurrect?

True - the Banks are also negligent and word is that they too will have their haircuts soon, as will several professional groups, heh heh interesting really!

I am told that the Police too have made some interesting findings - heh heh with more police reports to be filed at Bukit Aman - I think there is going to be alot of activity and embarrssment to a certain local council, a politician having "dinners/teas with a certain developer", several agencies - heh heh.

I am told more dirt Yes! Real muddy dirt with worms and filty "maggots" will be exposed soon - Yes Yes Yes!

And finally - JUSTICE FOR THE INNOCENT PURCHASERS!

posted 07-07-2002 09:51 PM         

Truly, I really admire this man and his team on the ground.

posted 13-07-2002 01:58 AM            

Our job is to verify the credibility of
information received before we get to
publish the news.

For this, the credit must go to my
colleagues at the www.usj.com.my EdTeam for
their dedication, volunteerism and tireless
sustenance.

It has been a thankless job.

But compared to the sufferings of the
affected buyers of Rhythm Avenue and Newgate
Avenue, what we do is too neglible to blow a
trumpet.

If you empathise and sympathise with these
buyers, give them your support by forwarding
the USJ.com.my webpages to your friends and
even the authorities.

posted 15-07-2002 11:06 PM            

I'm not a purchaser nor do I have any interest in any way, except empathy for the real buyers.

With all the comments made here, I'd like to add one too.

If you want your money back, or want to see some real positive steps being taken, you just need to wait a little longer. I'm sure all these issues will be magically solved JUST BEFORE the next national elections. You'll see.

Mark these words.

posted 16-07-2002 12:37 AM            

The land occupied by the stalled Rhythm Avenue apartments in USJ19 was originally planned for one-and-a-half story flatted factories.

However, with a stroke of a pen, the land-use was re-zoned by the local authority into a 33-storey building, complete with a basement car park.

This information was contained in an article written by theSun deputy editor R. Nadeswaran on April 13, 2000.

Click here to read the full report.

Sources told the usjXpress Team that Nadeswaran's article has been included into a full-fledged report to be lodged with the Anti-Corruption Agency (ACA) by an interested party soon.