Sunday, June 15, 2008

Brief Info On Megamall Pinang

Penas Sayang Development Sdn Bhd (later known as Tanjung Gemuruh Sdn Bhd) (“TGSB”) is the developer of Bandar Penas a mixed development consisting of 934 units in a shopping complex, Megamal Pinang, Prai (“Megamal”).

TGSB was wound up by the Inland Revenue Board on 24th March 2003, for failure to settle its income tax.

Initially, TGSB was managed by the Insolvency Department.

Thereafter, the court has ordered that the management of TGSB be handed over to 2 liquidators from Messrs. Mustapha & Raj, an accounting firm.

MMP Management Sdn Bhd (“MMP”) is a company appointed by TGSB to manage the operation of Megamal.

MMP is closely related to TGSB as they are in the same group of companies and also having common director and/or directors who are siblings.

Therefore although TGSB is wound up and no longer has any control over Megamal, its associate company MMP continues to CONTROL AND MANAGE Megamal.

Persatuan Peniaga dan Pemilik Megamal Pinang (“Persatuan”) is an association formed under the Societies Act for the purpose of promoting and protecting the rights of owners and businesses at Megamal.

The Persatuan is of the view that TGSB/MMP cannot be allowed to continue managing Megamal and has since 2003 actively work to preserve our hard earned investment and business in Megamal.

We have seek the help of various government authorities such as the Penang State Government, the Federal Government, the Housing and Local Government Ministry, the Insolvency Department and the Seberang Prai Municipal Council to allow the owners themselves to manage Megamal so that we can do something to restore Megamal.

Now finally with the passing of the Building and Common Property (Maintenance and Management) Act 2007 (“the Act”), the owners of Megamal can now form the Joint Management Body (“JMB”) comprising of people elected by the owners themselves to manage Megamal.

However, the Liquidators have failed to convene the first meeting of the JMB by 11th April 2008 as required by the Act.

The Persatuan has written to and met up with the COB many many times urging him to use his power under the Act to appoint the Persatuan to convene the meeting.

The Persatuan is worried that if it is left to the Liquidators to convene the meeting there will be issues relating to eligibility of owners to vote at the meeting, thus depriving the setting up of a Joint Management Committee which is truly representative of the owners.

The fear of the Persatuan came true. This is because when the COB ordered the liquidators to convene the meeting which was supposed to be held on 26th June 2008, there were a lot of complaints by the owners.

Many owners were not given with the notice of the meeting, and some owners have been served with 2 different notices.

As a result of intervention by the Persatuan, the COB finally agreed to step in and has fixed the JMB meeting to be held later.


Since the winding-up of TGSB, the power of MMP to manage Megamal is doubtful. For example, we the owners have been billed not by MMP but by another company called MNP Properties Sdn Bhd. The bill in turn asked us to pay MMP.

The Developer TGSB has left behind a debt of RM795,574.47 owing to Pentadbir Tanah Daerah, SPT and this is one of the reasons why strata title still could not be issued to owners of Megamal. As a result owners still have no title over the properties they invested in and they had to pay RM3,000.00 for consent each time they want to sell their properties. All this is because the strata title is not issued.

TGSB/MMP has not been able to account for the sinking fund paid by Megamal’s owners amounting to millions. This is the owner’s monies collected for effecting repairs to Megamal. As a result, Megamal is in disrepair.

No account has been given for the owner’s inspection as to how the maintenance charges and rental from the common areas have been utilized. This is despite repeated demands for the same from the Insolvency Department, the Seberang Prai Municipal Council acting as Commissioners of Building (COB) and also the Persatuan. How can we as owners of Megamal be kept in the dark about our own monies which are supposed to be used for the betterment and maintenance of Megamal?

Illegal kiosks have been built in the common areas belonging to the owners. These kiosks are built very close to the owners’ units. Not only are they fire hazards, they also obscure the façade of the owners’ units. Another question is, who collected the rentals and maintenance charges for these kiosks, monies which are suppose to belong to owners of Megamal and used for Megamal? The Persatuan has actively lobbied against this matter and actions have been taken by the Seberang Prai Municipal Council to demolish those illegal kiosk.

The maintenance of Megamal has been getting from bad to worse and Megamal is now in a sorry state where many M&E items are not working. There were incidents of the electricity being cut and the car park being closed. Given time, the building may further deteriorate if the present management is continued.

The Persatuan discovered that many parts of the building which were initially common areas had been sold. Under the Strata Title Act, common areas belonged to the owners of Megamal collectively. Again, the question is, who allowed that to happen and who pocketed those proceeds of sale?




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