Rhythm Avenue: Hwa Beng's moves now being watched

Rhythm Avenue #2: A study of Lee Hwa Beng's website and his emails to affected buyers reveals constant shifting of goal-posts - Press conference postponed many times to give leeway to developer Sanjung Utama. Why?
Posted on 08.20pm Apr 24, 2002

The 'Rhythm Avenue'
Series #2:

By usjXpress Team
Email: edteam@usj.com.my


SUBANG JAYA, April 24: There must be a good reason for Subang Jaya state assemblyman Datuk Lee Hwa Beng to keep postponing his planned press conference on the Rhythm Avenue issue.

Only that, he is not telling why.

A study of his website reveals at least six purchasers of the Rhythm Avenue apartments have emailed him on the delay, some even sought for his help.

However, Lee's crafted answers are often politically clever with no obvious solutions given.

Buyers interviewed by the usjXpress Team said they could not understand why Lee kept postponing his press conference on the issue, which he promised to hold as early as in January this year.

The buyers are also baffled at the leeway given to the developer despite the fact that the date for the handover of the properties was over due after January.

Some observed that Lee has been evasive when, in year 2000, a mainstream newspaper linked construction works around Rhythm Avenue to severe cracks that developed in several USJ 19 houses.


EMAIL REPLIES

Here is a summary of Lee's email replies to the buyers (click on the date to read the details):

03.01.2002: Lee told Oh Huey Ling that he would organise a press conference on the Rhythm Avenue issue. No date was given.

25.01.2002: Lee told Dr Alan Wong that he would "give the developer" until Chinese New Year (12.02.2002) to give an answer.

20.02.2002: Lee told Oh Huey Ling, again, that he would wait until Chap Goh Mei (26.02.2002) for the developer to come up with an answer.

08.03.2002: Lee told Adrian Chin - who asked about Newgate Avenue, another abandoned project in nearby USJ21, also developed by "the same developer" - that he would call for a Press Conference if construction work did not resume by March 17.

19.03.2002: Lee told Adrian, again, that he would hold a Press Conference by the weekend (24.03.2002) if "all goes well".

25.03.2002: Lee told Adrian, again, that "There is no clause in your Sale & Purchase Agreement where you can sell back to the developer. Your recourse is to sue the developer for completion and for compensation for any delay. It is all spelled out in your agreement."

Incidentally, Adrian who saw no press conference being called over the weekend, has persistently told Lee that "I (Adrian) hope that it is not another delay ploy because the "pushing of the buck" may be the next stage by the new so-called partner".

02.04.2002: Lee told Yvonne Lee Choon Lean that he planned to hold a Press Conference by next week (Monday week of 08.04.2002).

18.04.2002: Lee told Tho Lai Pun that he has instead asked the developer to "give out a press release" soonest possible".

No date was given. Lee also said "the (other) alternative is messy and long for all of us."

However, after the vernacular newspapers and Malaysiakini carried news on some buyers' demand for full refund April 24, Lee was said to have sent faxes to several buyers informing them that a press conference would be held on April 30.


REVIVE

The usjXpress Team was also informed that Lee had emailed another buyer by explicitly informing her that the developer of Rhythm Avenue was one Yap Kwee Huat.

The same source also said Yap has found a new partner to revive Rhythm Avenue soon.

Lee, however, said that he was unable to reveal the identity of Yap's new partner as he "has just met him for the first time".

A search with the Kuala Lumpur Stock Exchange and the Company Commission of Malaysia revealed that Yap is the managing director of YCS Corporation (ROC No: 029238-M), a public company listed on the Second Board.

On record, the Rhythm Avenue was developed by Sanjung Utama Sdn Bhd (ROC No: 345273-U).

Yap holds the majority shares in Sanjung Utama via Arus Delima (M) Sdn Bhd (ROC No: 379207-A).

Arus Delima (M) Sdn Bhd is, in turn, equally-owned by Yap Kwee Huat (NRIC: 550324-04-5077) and Yap Kwee Chai (NRIC: 610925-04-5189) via Energy Park Sdn Bhd (ROC No: 427552).


7-DAY ULTIMATUM

April 23, both USJ.com.my and Malaysiakini reported that Sanjung Utama Sdn Bhd, the developer for Rhythm Avenue service apartments in USJ19, has been given seven days to make full refund to a group of purchasers.

The ultimatum was issued by Dr Jacob George, president and legal adviser for Consumer Association of Subang and Shah Alam (CASSA) at a press conference here April 23.

George said he would raise the case with the deputy prime minister Datuk Seri Abdullah Ahmad Badawi if the developer failed to respond by the deadline.

Earlier, a group of Rhythm Avenue apartment purchasers have appointed George as their representative in making their demand for full refund.

They claimed they have paid up to 95% of progress payment, but the developer have yet to hand over vacant possession of their properties.

The said the developer has exceeded the date of delivery, ranging from November 2001 to January 2002, as stipulated in their sales and purchase agreements.

George said when purchasers approached Lee, they were informed that the developer was seeking a financier for the project.

"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.

George added that several other professional bodies should also be queried, such as the architects in charge of the project.

He said the professional bodies had issued the letter allowing the developers to collect 95 percent of the purchase price as early as three to six months ago.

Meanwhile, Lee did not respond to email questions related to Rhythm Avenue sent by USJ.com.my administrator, Jeff Ooi.

Attempts to contact Sanjung Utama were also unsuccessful. The developer was said to have relocated to the office of YCS Corporation at No.2, Suite 1-1, Jalan TP5, Taman Perindustrian UEP Subang Jaya (Tel: 03-80242922).

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

"Today (April 24) alone, we have registered more than 260 buyers who want CASSA to help them in the issue," George said.

However, George said CASSA would only assist bona fide purchasers of Rhythm Avenue apartments who are required to show their sales and purchase agreement and identity cards of the signatories.


Related Reports:
Papers identify causes for cracks in USJ19 houses

Malaysiakini: Consumers group wants errant developer to return money
China Press: Rhythm Avenue buyers demand full refund

Rhythm Avenue Series:
#1: RM100 million (95% progress payment) collected, but project stops...
#3: Web of mysteries around Sanjung Utama

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