Results 1 to 10 of 10

Thread: Financial irregularities in condo accounts

  1. #1
    Join Date
    Aug 2010
    Posts
    375

    Default Financial irregularities in condo accounts

    ST 19/11/2012

    By Goh Shi Ting
    A CONDOMINIUM in Changi - Ballota Park - has uncovered alleged financial irregularities in its accounts, prompting at least one resident to call for the matter to be reported to the Commercial Affairs Department (CAD).

    But before a decision is taken on whether to go to the white-collar-crime authorities, a forensic auditor has been hired to get to the bottom of the matter.

    Due to the ongoing probe, Ballota Park's accounts for the financial year ended March 31 could not be passed at an annual general meeting (AGM) last month.

    The interim accounts for the 365-unit condominium from April 1 to June 30 were also not adopted, as stated in the minutes of the AGM, a copy of which was obtained by The Straits Times.

    The accounts involve maintenance fees paid by residents, which come up to about $300 a month and are used to pay for the upkeep of the freehold estate, which is 16 years old.

    The chairman of the Ballota Park management council (MC), Mr Koh Kim Huat, said the forensic auditor was hired in late June but the results were not ready before the AGM.

    To speed up the investigation, an executive member, Mr Kenny Soh, suggested filing a complaint with the CAD at a recent council meeting.

    No report has been made to the authorities though, according to the current MC. "There are a lot of consequences if we launch a CAD report, especially if it's not so terrible," said the secretary of the MC, Mr Keith Lee.

    "Since we've already started the forensic audit, we might as well carry on and clear things up first and not act so rashly," he added.

    The current MC took over the reins last year after the previous office-bearers left.

    The MC was unable to say when the forensic auditor is expected to complete its work.

    In March, the MC engaged the services of management agent SavillsCKH to see to the maintenance of the condo.

    On the advice of the agent, the MC decided to fork out about $10,000 to embark on the forensic audit to scour through past records for discrepancies.

    It is understood that during the AGM, at least two residents voiced concerns regarding payment of maintenance fees that was not recorded.

    "We are the whistle-blowers," said Mr Lee. "There must be people in the council to find out the problem and we will not sweep them under the carpet."

    Residents questioned the level of security of the accounting system.

    "How is it so easy to swindle the money?" said one resident, who declined to be named. "I think the procedures should be tightened."

    Under the Building Maintenance and Strata Management Act, the MC is elected from among residents to administer the day-to-day running of a property.

    [email protected]
    hungry eat sleepy sleep

  2. #2
    Join Date
    Jul 2011
    Location
    Earth
    Posts
    4,063

    Default

    So who will pay for the legal fees if there is going to be a court case?

  3. #3
    Join Date
    Nov 2008
    Posts
    3,812

    Default

    Bro Radha, please read... Dont get caught in shit...

    Butter. It will be the case of new mgmt committee (covered by mgmt fund) vs old mgmt committee(their own pocket).

  4. #4
    Join Date
    Jul 2011
    Location
    Earth
    Posts
    4,063

    Default

    Quote Originally Posted by chestnut
    Bro Radha, please read... Dont get caught in shit...

    Butter. It will be the case of new mgmt committee (covered by mgmt fund) vs old mgmt committee(their own pocket).
    So I wonder if they need to have EOGM for the residents to vote?
    Some residents may not want to bring the matter to court and don't want the management fund to be spent it that way.

  5. #5
    Join Date
    Jun 2011
    Posts
    6,134

    Default

    Quote Originally Posted by chestnut
    Bro Radha, please read... Dont get caught in shit...

    Butter. It will be the case of new mgmt committee (covered by mgmt fund) vs old mgmt committee(their own pocket).
    yup bro i know...last time my old condo also got some saga...someone on inside makan money but lucky all cover up...frankly i think its happening quite a lot so many condo nowadays...

  6. #6
    Join Date
    Jul 2011
    Posts
    93

    Default

    Quote Originally Posted by chestnut
    Bro Radha, please read... Dont get caught in shit...

    Butter. It will be the case of new mgmt committee (covered by mgmt fund) vs old mgmt committee(their own pocket).
    Bro,any advise on buying resale condos in regards of mgmt checking?

  7. #7
    Join Date
    Aug 2010
    Posts
    375

    Default

    Quote Originally Posted by buttercarp
    So who will pay for the legal fees if there is going to be a court case?
    if it is a criminal charge based on the action of individuals, the accused will hv to engage counsel at their own cost.

    Most mcst will have taken up public liability insurance agt negligence or acts of omission but it does not cover criminal acts.
    hungry eat sleepy sleep

  8. #8
    Join Date
    Aug 2010
    Posts
    375

    Default

    Quote Originally Posted by radha08
    yup bro i know...last time my old condo also got some saga...someone on inside makan money but lucky all cover up...frankly i think its happening quite a lot so many condo nowadays...
    The amt of money involved in the maint charges is huge. Imagine a 700 unit condo with an ave mtly maint cost of $300...that's $210k per mth.Collection is qtrly, that's $630k per collection every qtr or $2.52m per year

    The temptation is great. Always good to hv a good and honest accountant on board the team.
    hungry eat sleepy sleep

  9. #9
    Join Date
    May 2007
    Posts
    399

    Default

    Quote Originally Posted by chestnut
    Bro Radha, please read... Dont get caught in shit...

    Butter. It will be the case of new mgmt committee (covered by mgmt fund) vs old mgmt committee(their own pocket).
    It is case of pocketing of maintenance fees, which is handled by the MA. So it will be new MC vs MA which could be ex-MA as they have a new MA since March.

  10. #10
    Join Date
    Jun 2011
    Posts
    6,134

    Default

    Quote Originally Posted by acidic.straw
    The amt of money involved in the maint charges is huge. Imagine a 700 unit condo with an ave mtly maint cost of $300...that's $210k per mth.Collection is qtrly, that's $630k per collection every qtr or $2.52m per year

    The temptation is great. Always good to hv a good and honest accountant on board the team.
    thats a lot

Similar Threads

  1. Passwords reset, accounts accessed in SingPass scare
    By irisng in forum Coffeeshop Talk
    Replies: 0
    -: 06-06-14, 09:12
  2. 2.5% interest rate to continue on CPF Ordinary Accounts
    By princess_morbucks in forum Coffeeshop Talk
    Replies: 0
    -: 18-11-13, 12:15
  3. Forensic auditor hired to check condo's accounts
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 19-11-12, 18:32
  4. Property sector accounts for 51% of S'pore banks' loans
    By mr funny in forum Finance and Legal
    Replies: 0
    -: 21-12-10, 17:02
  5. How is estate duty calculated on joint accounts?
    By mr funny in forum Finance and Legal
    Replies: 0
    -: 10-06-07, 16:06

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •