SABAH DAP

Thursday, June 19, 2008

Taman Indah Jaya Phase 9 Housing Scandal in Sandakan, Sabah



We have today provided details information to the BPR Sandakan office providing them with comprehensive details with regard to Taman Indah Jaya Phase 9 housing estate consisting of 290 units in Sandakan and as more new evidences came to light, it shows the said housing was affirmatively sited at PT 97070642 and not in TL 077550235 as stated in the Sale & Purchase Agreement. We believed the details provided are sufficient for BPR to commence immediate investigation and bring the culprit to book.
And we like to take this opportunity to thank the public for their courage by bring to our attention and providing us with those new documents to the case and without them we will not be able to come to this point in exposing this scandalous scheme.

DAP SANDAKAN is service oriented political party and our service is free and therefore, anyone soliciting money on our behalf should be avoided.

Copies of the information are also dispatched to Bank Negara, Sabah Law Association, Land & Survey Department and Sabah Housing Controller Unit urging them to conduct their own internal investigation and to persecute anyone in their own sphere found to have involved in this scandal.

On the basis of the new documents available to us, the first question come to mind is why Wah Mie Realty Sdn Bhd (WMR) as a developer proceed with the development in 1999 knowing full well the legal title to the site was in doubt.

These doubt were not unfounded and this can be seen in the land application number PT 97070642 that were submitted by Sandakan Municipal Council (SMC) to the Land & Survey Department in 1997 which at that material time has yet to be alienated for development but the SMC Building Section gave the go-ahead in 1999 while fully aware the status of the land was still a state land meaning it has no legal title to the land.

And to circumvent the problem and to handle the Sale & Purchase agreement with unsuspecting buyers, the developer use a land title number of an adjoining piece of land (i.e TL077550235). This shows the clear criminal misrepresentation and the intent to cheat and to mislead.

Since the housing is located in PT 97070642 thus the Power of Attorney dated 15th January 1993 used by WMR to conclude the Sale and Purchase agreement only cover the town lease and there it is fatally faulted and not binding which only means one thing – all the Sale & Purchase agreement for phase 9 is null and void from the day it was signed.

When it come to the Sale & Purchase agreement, the legal firms involved loom large as house buyer had paid between Rm4,000 to Rm6,000 legal fees for their services and it is mind boggling, they could not detect the discrepancy. And yet a simple land search should have sufficed.

Furthermore, the Land & Survey Department should have detected this encroachment into a state land and taken necessary actions to stop it. And the question here is why it is not done or perhaps some undue interference from “higher up”?

We strongly advised the House buyer to write to their respective banks to inform them the immediate suspension of the monthly repayment of the housing loan in light of the discrepancies highlighted by DAP SANDAKAN. Payment will only resume after the banks have fully satisfied with the land status and as this would also pressure the banks into taking legal action against the culprits.

As the houses were not built on the land as claimed then it also renders the renewal and validity of the bank Mortgage Reducing Terms Assurance policy (MRTA) and the fire insurance policy in serious doubt and uncertainty.

Lately, banks seen to be aware of this as some owners were unable to re-loan or sell their properties as Licensed Valuer could not able to put a value to a “title-less” property.

We also urged the President of Sabah Law Association (SLA) to investigate whether their members had deviated from their own code of ethics as in this case.

We noticed most of the lawyers in Sandakan are the Panel for the same developer and thus, it became extremely difficult to seek second legal opinions in this situation and is unhealthy.

Therefore, SLA should come up with some self regulating guidelines in their own profession to prevent a great majority of lawyers in an area from ending up as the Panel for any one developer. We hope SLA will look into this seriously or they will be a public calls to allow peninsular lawyers put up office here.

We urged the Housing Controller Unit in the Ministry of Local Government and Housing must ensure future issuance of developer license need to take into account following points;
a. They should be separate lawyer for the Developer and House Purchaser.

b. Conversion of master title into subdivision or strata title should be done within 3 years as without this some of the master title is alway in this stage of “un-subdivision” and we noted many are more than 10 - 20 years or so.

c. Should not allow for the administrative charges for reassignment after 3 years.

d. Housing joint venture should show a clear cut ownership of the land. As we noted some housing land are still in native title (NT) and why not have the conversion done first? And what would happen if the developer absconded?

As Taman Indah Jaya is located in the constituency of YB Au Kam Wah and in light of the evidence now available to him we hope he is brave enough to call the BN state government to conduct a full investigation. I also urge Y.B Au to get SMC to publish how much it receives from the sales of Taman Indah Jaya Phase 9 project?

DAP SANDAKAN is working closely with our DAP elected representatives Y.B Jimmy Wong and Y.B Dr. Hiew King Chu to bring this case to the attention of the state assembly and in Parliament.

Once again, we wanted to reiterate that the state government should alienate the land directly to the house owners.


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