I REFER to the letter, 'Doubts about foolproof condo management' by Mr Paul Chan Poh Hoi (ST, Sept 11).
I suspect there are considerable irregularities in the accounts of condos all over the place.
I can give two examples from a case I was personally involved with:
Arrears in payments for maintenance are common in private condos and to prevent this, interest charges are commonly imposed.
In a case where many such charges were imposed on condo owners, selective condoning was allowed which smacked of favouritism but was duly passed by a resolution.
Condo AGMs are normally sparsely attended, hence groups can form and pass resolutions which may seem shady in nature when there is opposition.
When I brought this to the attention of the Building and Construction Authority (BCA), I was told this was 'democracy' in place, condo councils are elected and they can do all things by a majority vote.
Even the auditors, to whose attention I brought this gross irregularity, took a similar position. I was aghast, and by the way, I am a certified public accountant myself, though not a practising one.
In another case, when an expense item, duly approved by the management council, was grossly exceeded by someone, the whole thing was subsequently split into several items and approved retroactively. The person in whose favour this was done was perhaps 'someone' very well-favoured.
These are only two examples in one small condo. It is surely possible that occurrences of this nature go on in many others. The BCA cannot or should not take the stand that it is all (including dishonest favouritism) a matter of 'democratic' management and hence outside the laws of the country.
Democratic institutions have laws or regulations that are meant to be observed.
Mr Chan is absolutely right, legislation in a no man's land is not worth the paper it is written on.
It is time to wake up before a scandal occurs.
Bibhas C. Ghosh
