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Contractors with possible links to triads corner Penang’s condo jobs

Property News/ 12 August 2013 Leave a comment

Runners for the ‘in-house’ contractor manning their counter near the elevator entrance of a newly completed apartment project in Penang.

GEORGE TOWN: Contractors, some with links to triads, are forcing buyers of high-rise property here to carry out renovation works.

Many of them charge a premium, sometimes up to 20% more than normal contractors.

If the buyers insist on hiring contractors from outside, they are compelled into buying materials such as sand, bricks, cement and steel cages.

Alternatively, the buyers can pay a “settlement” to bring in outside contractors.

Most buyers dare not lodge complaints with the police for fear of retaliation from triad members.

With developers turning a blind eye to the issue, the so-called “in-house” contractors have become more brazen in intimidating buyers.

Although such practices could be traced back to the 1990s, the mushrooming of condominium projects in Penang has made matters worse.

It has been estimated that more than RM10bil worth of projects had been undertaken on the island over the past 18 months.

During a check by The Star at several newly completed apartment blocks in Relau, a man was seen manning a makeshift counter near the lifts.

He said his “company” was selling sand, bricks, cement and steel cages, and providing other services such as hacking and electrical wiring.

When told that the unit owner wanted to bring in his own contractor to carry out tiling works, the stern-looking man said: “You can still buy the steel cages or other materials from us. We will handle your waste as well.”

Another in-house contractor, who declined to be named, claimed that he could offer better prices for construction materials.

“We get bulk discounts from suppliers. If we buy 100 steel cages and you buy only one, who will get a better price?

“Besides, we also know the unit layout better than anyone else. We know where the electrical wiring is hidden in the wall. We also know where to hack inside the house,” he said.

Ideal Property Development Sdn Bhd managing director Datuk Alex Ooi said his group had encountered numerous cases of such triad activities in its projects in the South-West district over the past few years.

“This is because the district is a hot spot for the development of reasonably priced properties (read more here). Whenever we have such problems, the police are very quick to come in to arrest the culprits. We have also tightened the security for our projects in the district and this has reduced such incidents,” he added.

SP Setia Bhd property (North) general manager Khoo Teck Chong said the group’s projects in the South-West district had never faced such problems because of its tight security system.

Penang police chief Deputy Comm Datuk Abdul Rahim Hanafi urged unit owners to lodge reports or call the police hotline at 04-269 1999.

“We do not condone such actions. We need unit owners to provide us with information so that we can act.

“Everyone has the right to choose their own contractors or material suppliers,” he said.

DCP Rahim gave his assurance that the identity of whistle-blowers or affected victims would be protected.

Source: StarProperty.my

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  1. HUAT
    August 13th, 2013 at 09:56 | #1

    That picture is taken at Desa Aman apartment in relau..

  2. HUAT
    August 13th, 2013 at 10:03 | #2

    The ID and contractor from lipway decor. I know little about renovation but their charges are quite expensive! If I am not wrong, lipway decor also the gangster contractor for melody homes in farlim. If dont want them to reno, pay rm500 to rm1k for “protection or garbage fees”.. Else you can dream on getting external contractor.

  3. HUAT
    August 13th, 2013 at 10:11 | #3

    Even if owners or victims reports, i am quite sure nothing much can be done. These triads is not working alone. The police are useless..triads will bribe them! Triads will charge higher premiums to victims. If you report, you really think your identity as a whistle blower will be protected? That picture shown above clearly shows that these GC is operating there. But still those GC are fine. What is the police doing? Obviously… You know what is going on..

  4. winvin
    winvin
    August 13th, 2013 at 10:14 | #4

    what is the point to mention this, even if you lodged a report, do you think the police will take action? This has been on going many many years. Most of the apartments/condos will hv this kind of counter(s).

  5. Simcity
    August 13th, 2013 at 10:15 | #5

    i had pay RM800 for the “settlement” for my new home at farlim

  6. daniel
    August 13th, 2013 at 10:20 | #6

    i c that at one world also got a contractor station there, how come the CEO say no issue…

  7. Bryant
    August 13th, 2013 at 10:21 | #7

    I know that apartment which “HUAT” mentioned. I was there last sunday.
    Still, the counter is there. I guess no action from police.

  8. sungai1ara1resident
    sungai1ara1resident
    August 13th, 2013 at 10:53 | #8

    i found its very funny that police asking the resident to report….come on……be more proactive…..just go there & halau them out……all the developer can work with the police to tighten the security, ronda…setup ops payung for all new project…but they choose to close 1 eye……..

    wonder where is all the YBs????? All NATO policy……..no action …talk only……

  9. martha
    August 13th, 2013 at 11:12 | #9

    Gangster contractors always win.

  10. bolehland
    August 13th, 2013 at 12:18 | #10

    welcome to Bolehland….like or no like…..u have no choice….
    chai lou kao tat chu, chu la hoi siong shu

  11. KT
    August 13th, 2013 at 14:39 | #11

    later Gangster will say : “you tak suka, you can migrate keluar!!!”

  12. SLK
    August 13th, 2013 at 15:40 | #12

    The developer know better than us… Developer are the 1 who allow them to setup counter …The article mentioned: Ideal Property Development Sdn Bhd said his group had………. In fact the developer should act against the gangster contractor, not wait for the owner to report.

  13. ho
    August 13th, 2013 at 16:36 | #13

    NUsmestro also another one….oasis

  14. ks-rev
    August 13th, 2013 at 18:29 | #14

    come on lah, evrytime got new condo/apartment OC, sure got these issue, then police come out talk talk, ahli DUN / parlimen also come out talk talk (gain publicity mah), then NOTHING HAPPEN, gangster counter still there, then issue become quiet… then another condo OC, the whole cycle repeats…… how many yrs we have heard abt this bullshxt!!??

  15. Lim 88
    August 13th, 2013 at 20:06 | #15

    they get away with this because you allow them to and the dodgy developers who only sell you a shell apartment with no fittings, let them get away with this. No one can tell you which contractor you need to use nor who your chosen contractor has to buy supplies from

    Call the police and insist on the police removing them, Malaysia is like this because the people are lazy and let this happen

  16. Lim 88
    August 13th, 2013 at 20:10 | #16

    I just checked, this Desa aman apartment is selling for only RM 145k , for this price of course you will get trouble, how much money do these contractors think they can extort from people who choose to live in only 145k home !!. a few hundred here and there, hardly the Mafia are they

  17. Truth
    August 13th, 2013 at 20:15 | #17

    Expected nothing surprising because you are staying in M’sia boleh.

  18. light
    August 14th, 2013 at 00:54 | #18

    This is the first time I hear got such gangster contractors in pg. But, in klang valley, no such thing.

  19. Unker Ho
    August 14th, 2013 at 10:57 | #19

    Cross the channel and no such things in mainland…

    oh.. wait… there used to be one but it was quickly dealt with… not by police.. but by the ‘community service’ from Raja Uda..

    LOL !!!

  20. penang
    August 15th, 2013 at 07:48 | #20

    Very common. We had this experience also about 8 years ago and had to pay settlement fees in order to continue with the renovation work.

  21. Crime
    August 15th, 2013 at 11:44 | #21

    light :
    This is the first time I hear got such gangster contractors in pg. But, in klang valley, no such thing.

    Bcos penang ppl only can talk big in internet but come to real life kiasu n kiasi. Tat wil help to make the issues continue to mushroom without a fix.

  22. detroitcity
    August 15th, 2013 at 16:20 | #22

    this has already been ongoing for so many years. im quite surprised why only recently this issue was brought to light.

    i’ve heard of incidents where owners brought in own contractors to perform renovations and owner’s and contractor vehicles being vandalized eg. flat tire, paint splashes, body panel being scratched and etc. police have been informed but no action being taken. developer being informed, instead of helping resolve the situation, owner being told to at least support these goons by allowing them to clear renovation debris from unit. these triad goons don’t charge cheap.

    hope authorities would step in and put an end to these on-going nonsense!

  23. funny
    August 15th, 2013 at 19:00 | #23

    Latest news state government of penang will blacklist, take action on developer engages with gangter contractor, GOOD.

  24. uncle 5
    December 26th, 2013 at 23:41 | #24

    the counter still there la…no action from government…

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