I REFER to the letter "Stop sinking fund collection" by Chang Kim Loong and agree with him. Sinking funds have been abused by some developers and management companies.

I sold off an apartment in March 1999 but the refund of RM4,000 which I paid to the sinking fund was overlooked.

I informed my solicitors handling the sale to claim the refund in November 2002 after discovering the oversight by my solicitors in acting on it. I wrote to the management company in February last year requesting for the refund.

The former management confirmed that its accounts showed my money was in its possession but had deducted RM1,275.86 for expenses on upgrading works to the building.

Although the company did not furnish me with proof of such upgrading works, I agreed to the deduction to close my file and requested them to refund the balance of RM2,232.87.

However, after extensive pursuit, the company told me that all monies had been transferred to the new management company.

I then wrote to the new management company but was advised that no details of the audited accounts were provided by the previous property manager and they were unable to verify my claim and therefore could not make a refund.

I wrote a letter to my solicitors requesting them to write to the new management company.

The reply was that the sinking fund "follows the parcel unit" and as such they could not comply with my request.


Christine Ng
via e-mail