A management dispute has emerged at Green Garden Flats in Paya Terubong, with the existing management body and a newly appointed management company both claiming authority over the 2,255-unit residential development.

According to a report by Sin Chew Daily, the existing management body, Nostalgia Kencana Sdn Bhd, and about 30 residents held a press conference on Aug 10 to object to the Penang Island City Council’s Commissioner of Buildings (COB) appointing EAD Sdn Bhd as the new management body without residents’ consent. The development has an estimated occupancy rate of 70%, with more than 9,000 residents.

Green Garden’s Management Corporation (MC) chairman Leong said representatives from EAD arrived on Aug 4 with a letter from the COB stating that the company had been appointed to take over management of the flats from Aug 1. She questioned the decision, saying the replacement was made without an Annual General Meeting (AGM) or an open tender process.

According to her, Nostalgia Kencana resumed management of the flats after an AGM held in 2019 and has maintained the monthly maintenance fee at RM55, including RM5 for the sinking fund. She said the management had overseen the upgrading of 16 lifts, security and cleaning services, as well as issues such as power disruptions and water leaks.

Leong added that the existing management body had planned to hold an AGM on Aug 15 but was informed that the COB would not accept the proposed meeting.

Residents’ representative Mr. Lim said the COB should give the existing management body time to organise an AGM, allowing residents to decide which management body should take over. He also expressed concern that maintenance fees could increase under a new management arrangement.

Meanwhile, Chooi Foo Cheong, vice-chairman of MCA Bukit Gelugor division, suggested that the authorities listen to residents’ views and that the existing management body disclose its accounts so residents can compare the available management options before making a decision.

Interestingly, the latest dispute is not the first management controversy at Green Garden. In 2012, Nostalgia Kencana Sdn Bhd was charged by the Penang Island City Council over the collection of maintenance fees from residents of Blocks 1062 and 1066, and was later convicted and fined RM8,000, according to Sin Chew Daily. In 2016, Oriental Daily reported another dispute at Green Garden involving a different management company, including allegations concerning financial irregularities, outstanding electricity bills and disagreements over the management committee.