Multi-level Marketing Scheme

The first and the last?

It is interesting to note that our land in Jasin, Malacca was the first land project to be sold through a multi-level marketing scheme. Perhaps we should get Dato' T. Murugiah to contact the relevant ministry in charge of issuing multi-level permits to check on Yeng Chong Realty Sdn Bhd or its agent involved in selling the parcels of land to us, how it has turned sour and nothing was done to make them accountable.

When it was first launched in 1999, the project was launched with a bang and the pieces of land were sold off like hot cakes. We need not pay a deposit and have ten years to pay for the land. Besides, we were given to understand that MBSB, a subsidiary of EPF, was involved in the project, as stated in the Sales and Purchase Agreement.

Well, the scheme has failed and nobody was hauled up to answer for it. What makes it difficult for us to stomach was that the developers were still collecting money from unsuspecting purchasers although many have stopped paying the instalments (though only very recently).

It looks like the ones who made money were the agents who sold us the land. But many agents themselves bought pieces of land too and were now stuck like us.

So where have the millions of ringgit collected gone?

The Wheel Is Turning!

Good news, guys! The BGVAC had a very successful meeting with Dato' T. Murugiah (Deputy Minister in the Prime Minister's Department) on April 28. The Dato' understood our plight and immediately moved into action.

It is very obvious that we are the victims of the failed project in Malacca. We have paid money for land which we did not get!!! And some unsuspecting purchasers are still paying into the MBSB/Yeng Chong account. It is only just that we get back our money.

Dato' Murugiah had scheduled a press conference on another matter but he also brought up our problem to the pressmen. He also told the press that he would visit the Bandar Golden Valley site. The BGVAC members who were present also spoke to some of the journalists, who were mostly from the Malay and Indian language newspapers. Unfortunately, the Chinese and English language press did not interview the BGVAC members. Hopefully they will be there for the site visit.

The president of the BGVAC had sent a letter to the New Straits Times to highlight our problem but it has not been published yet.

Apart from the site visit, Dato' Murugiah and his officers are going to organise a meeting between the BGVAC, all relevant ministries, MBSB and Yeng Chong. To show that he means business, he had asked his officers to schedule the meeting next Monday.

Thank You, Dato' for listening to our problem and moving into action so swiftly. We really need the muscle of the Government to help us here. Some purchasers need the money to see them through this present hard times.

So purchasers who have not signed up with the action committee should stand up to be counted now.

Still in the dark...

At last MBSB officers and lawyers agreed to meet us on April 2 but it was not a fruitful meeting. In fact, there were some tense moments when some BGVAC members asked them about the money in the joint account of MBSB/Yeng Chong. We could not get a straight answer and was asked to write to their lawyer to show us the cause papers which would tell us how much money was still in the account. And bad news, guys! It seems most of the money has been withdrawn!

We want to know how this could come about as this is the cash of the purchasers. We could not get details from MBSB... probably because of the on-going court tussle with Yeng Chong. Whatever it is, we are very angry... our hard-earned cash is no longer in the account. And to think Yeng Chong is still collecting the monthly instalments from the purchasers!

As expected, MBSB claimed that they were not in joint venture with Yeng Chong to develop the Malacca land. But we saw in the newspaper cuttings that there were handshakes and a joint-venture signing ceremony to show that there was some collaboration between MBSB and Yeng Chong. It was announced in the newspapers that the profit-sharing is on a 55:45 basis, with Yeng Chong taking the bigger share. If there were no joint-ventures, why did MBSB keep quiet all this time and allowed purchasers to go on believing that MBSB was a partner in the project. At no point did purchasers get any denial from MBSB that it was not in joint venture with Yeng Chong. And why set up the joint account which all purchasers pay to? We should get back our money if the project has been abandoned, plus all the interest accrued.

Many things do not add up... The BGVAC is getting advice from the National House Buyers Association to plan our next move. One plan of action is to seek the help of the newspapers and the Public Complaints Bureau, as we seem to be unable to seek a meeting with the MP of Jasin, of which our land is in. We had wanted him to get the help of the Chief Minister to look into the problem.

Anyway, we managed to seek an appointment with Datuk Murugiah , the Deputy Minister in the Prime Minister's Department, who is also in charge of the Public Complaints Bureau. The meeting was fixed for April 28.