circular to all 124 email-addresses which are so far registered from all fellow-owners

 

 

 

 

Dear neighbours,

 

re:        the financial situation of the Miami Green developer Trans-Intand Sdn.Bhd.

as per 31-12-2005 according to the “bilance” sent to you all one week ago

            A/ for your information

            B/ proposal how to take action

 

A 1./     during our AGM on 21-05-2006 the short professional judgement of the displayed

fragmented financial information was announced that the MG accounts are being

depleted systematically + all owners were informed about this also in writing by

the minutes displayed on our website:

The result of an evaluation of the provided Trans-Intan “bilance” performed last week by a

tax & accountancy specialist has reconfirmed the concerns and has raised many questions.

The conclusion in shortform is this: the worst thinkable situation had become fact for us

if we don’t take action all owners will have to setup a new Sinking Fund once the responsibility

is taken over, either as a 1-time-payment of RM 4-5,000 or by monthly extra RM 200-250

or by a mix of both!

► “BESIDES” the CONTRACT ACT forces the developer to handle things with trustworthyness:

despite we all signed the Supplementary Agreement (hv you ever read whay you signed???)

taking/using the Sinking Fund for unjustified things would be considered a breach of confidence

towards the buyer who agreed to sign a Supplementary Agreement and to entrust the developer

with e.g. RM 4,000.- (respt. Constantly with a part of the monthly service charge)

 

 

2./        The provided “bilance” is actually not a bilance – as it is certified by the developer

            Himself: the figures on paper are neither officially certified nor officially audited,

            The “Auditor’s Report” has not been provided:

All figures must be doubted.

 

 

3./        The Sinking Fund is not RM 1.7 anymore?

The fixed deposit account does not exist, the f/d shown to me during March 2006 were

expired f/d accumulating only RM 1.2 mio!

Why are expenditures debited to this account which should be fixed for 10-15-20 years!?

 

 

4./        While all costs occurred for the Mimi Green Resort were particularly booked + paid 

            Trans-Intan separately additionally debited RM 305,000.- for Management Fees!

This means, we paid all costs anyway

and pay extra RM 25,000 monthly as a Friendship-Fee ???

We need to see this Management-Contract to understand and to evtlly accept.

 

 

 

5./        “Bilance” page 1:

Accumulated Fund, Common Fund = is not Sinking Fund but “Paid Capital”

This should not vary!

 

 

 

6./        “Bilance” page 1:

Surplus of income over expenditure:

            in 2004 a profit was achieved of RM 547,623.-

            in 2005 a loss was created of RM 17,808.-

Many costs were encreased vs 2004:

Management Friendship Fee = + 18%

Cleaning Maintenace:    basis page2 = +16 % / basis page 9 = +250 %

Landscape Maintenace:  basis page2 = +40 % / basis page 9 = +90 %

Security Charges:         basis page3 = +30 % / basis page 9 = +200 %

“Other payable”:                                                     page 9 = +300 %

 

 

7./        Electricity and Water: charges in 2005 RM 288,343./ = +21%

Can this be ???

 

 

8./        Upkeep of common area RM 78,538 = +10%

In addition to Cleaning & Landscaping ???

 

 

9./        Slope stabilization expenses

in 2005 RM 599,944.-

in 2004 RM 338,873.-

Before the Miami Green resort was created it was a tea plantation:

Trans-Intan was not the original developer (who went bancrupt) but bought it in a stage “x”   

and created the Miami Green Resort:

at the time the O.C. / C.F. for blocks A,B,C,D,E,F were issued the slope-works MUST have

been finished: if later it turned out that

►  either the contractor had done a louzy job so that new/additional works became necessary:

     in such case the contractor would be reliable and reparation works should be carried out by

     him under warranty, or he should at least pay for it (alternatively his insurance)

►  or/if Trans-Intan originally had tendered out/ordered the first slope-works at a too low

     measure (for example to save costs from their account) which did not co0rrespond to what

     was necessary = it would be Trans-Intan’s responsibility for which not we owners should pay!

 

 

BB / Proposal:

I suggest the “Speakers” of “the Miami Green Cash Buyer Action Committee” write a letter to

the developer in which they present the above questions and request him to explain them pls.

In the same letter we should state that we are prepared and authorized by all fellow-owners

“to forgive and to forget” and to renouce on any publicity for the case that the developer

will pay back any amount into the Maimi Green accounts as a consequence of this polite enquiry.

 

 

 

Dear all,

please, do you agree to my above proposal?

 

Besides, “I cannot imagine that the developer should chose not to answer” because he knows

we would go public and would engage a lawyer!  The Lawmaker’s setup besides is this:

► with 30 days from the developer’s First AGM the developer has to hand over the accounts

    to us owners (to the Council of the future MC)

► from receipt of the accounts runs a period of 45 days during which the future Council

    could take legal proceedings against the developer if considered necessary,

    which includes that we could submit any suspicious invoices paid to contractors to the

    inland revenue board for verification…   

► I am convinced that the developer will cooperate with us because he must prefer a friendly

    arbitrage & settlement with us directly!

It is clear that he must avoid a public court case and connected with it any bad publicity with

the press on Penang and throughout the country and also any negative reputation with those

hundreds of private and semi-governmental institutions / organizations / banks / associations /

companies in Pulau Pinang.

WE HAVE GOT these approx. 1,000 emails addresses (!) in Penang incl. a few in the Klang Valley

BUT we will NOT use it for now because our interest and intention is to have full accounts at the

developer’s First AGM !

…the developer besides knows about it, all as we keep him informed about everything we do in

our resort including this circular-mail…

 

With kind regards,

 Jens

Miami Green Resort Condominium Owners Association, Penang  c/o Mr. Jens Kehrhahn / Hon. Chairman  - 28C-15-3A Jalan Pantai Miami - 11100 Batu Ferringhi to enter website click here - h/p 012 - 4301 605 - email Jens.kehrhahn@gmail.com