Developer’s office out of bounds for villa investors
The Star 21/7/2006 By ESTHER CHANDRAN

REPRESENTATIVES of investors of Anggerik Villa II in Kajang have been advised not to go to the developer’s office anymore if they want to make queries or seek clarification.

The developer’s representative, W.W. Wong, said the management company (handling the investment) had appointed a professional accounting firm to look into the company’s accounts.

Investors, he said, would be advised of their findings in 14 to 21 days.

Wong said this when DAP National Consumer Affairs Bureau secretary Khong Chee Seng and three investors went to see him on Wednesday.

“We do not want anymore contact to be made with the developer's office,” he said.

To this, a stunned Khong replied that the venue was the developer’s address as given by the Registrar of Companies. “Where else should the investors go if they have to discuss matters and find out what is happening to the properties they signed up for?”

Wong replied that anything that was handed to the management company would be forwarded to the accountant, so it was best for the investors to deal with the accountants.

Khong then told Wong that the purchasers would continue to patronise the registered office as all the companies linked to the developer carried the same address.

“Please relay a message to the management and accountant that we would like a meeting to be held with all investors.

“We do not mind renting a hall because it will enable all investors to meet the developer at the same time,” Khong said.

He also asked that the developer give some seriousness to fulfilling the promises it made to the investors.

Khong then asked if the company was going to pay up loans that it had agreed to pay on behalf of the investors five years ago.

Once again, the only answer Khong and the investors got was, “Can you please ask the accountant?”

In 2004, investors got a rude shock when they received payment reminders and lawyer's letters informing them that they had defaulted on their loans.

The properties invested in were priced at more than RM200,000 each.

According to the investment scheme, investors were not required to pay anything up front.

The management company, which would pay the bank loan instalment for six years, acquired investors’ details and signatures for the loan.

According to Khong, the company reserved the option to buy over the unit at market price after six years, and if the property value had gone up, the company would profit 80% while investors took home 20%.

If the market price was lower than the purchase price, the company would make up the difference.

The management company failed to settle the instalments, and the banks have come after the investors because their names appear on the loan agreement.

Some investors now face hefty debts and the possibility of being declared bankrupt.

Other investors can contact Khong at 017-878 2881 or fax his office at 03-7983 7576.