Defaulting firm leaves 200 with debts

The Malay Mail 6/5/2005

KUALA LUMPUR: Some 200 investors of Anggerik Villa II in Kajang are saddled with debts as their names were used to obtain bank loans to build the condominium.

As the building's management company had defaulted on the loans since last October, the investors fear they might be declared bankrupt for failing to make payments.

Six of them, representing an Anggerik Villa Investors Action Committee, accompanied by DAP consumer affairs bureau secretary, Khong Chee Seng came to Balai Berita to highlight the issue yesterday.

According to Khong, the investors were promised by the company that they only had to sign certain documents to apply for the loans and need not pay anything as the company would settle the instalments.

Each investor had taken up loans of up to RM200,000 while the price approved by the Housing and Local Government Ministry for the units was below RM98,000. They were told by the company that the cheapest unit cost RM288,000.

He said the contract stated that the investors could either buy the units at the market price after six years or the company would sell them and share the profits with 20 per cent chanelled to the investors.

Khong said the investors were initially sceptical about the offer but the company convinced them with various documents.

The committee is inviting all investors to a meeting at Selangor Chinese Assembly Hall on Saturday (2pm). For details, call Khong at 017-878 2881 or Diana Abdullah at 019-233 0310.