Deficit in the management fund.

I promised to talk about the deficit in the management fund. Here I am, after a day off. Actually I went home to pay my respects to the deceased ones.

After going through the management account, I got a shock when I discovered that the security fees had increased to RM30,000 per month for the year 2004 from about RM20,000 per month for the year 2003. I guess the increament explained why there is a deficit in the management acc which gave the management the excuse to increase our maintenance fees.

I made a call to their finance manager to seek an explanation over the drastic increase in th cost of security services. When I mentioned I was someone from the Residents Association, the lady told me that under the Strata Titles Act the R.A. has no 'local standi'. I was quite upset but anyway, the lady promised to call me back after she had looked into the figures.

As promised, she did call me. I was thinking the management would ignore me. The lady told me that the rate for security services was based on the market rate. Previously, the rate was based on the wages of the security guards. I think the only reason the rate was based on the market rate was because UOA was offering REITS to the public and Dats Management which is a subsidiary of UOA was appointed as the property manager for UOA properties. So, Dats Management privatized its security services in order to make a profit. we are just the victims of circumstances.

Besides receiving about RM12,000 a month for managing our properties, Dats Management is also making about RM 10,000 for providing the security services. How greedy developer can be ! Datuk Ong Ka Ting should read my blog. He should know that the owners of the properties have no bargaining power at all if their properties are without strata titles. He should formulated a by-law that gives some kind of management power to the owners.

I really look forward to the day when the strata titles are issued and I guess, on that day it will be our independent day. I think it's getting late and I'm rather sleepy. The next issue that I will be writing about will be the sinking fund. Good night and have a nice day.