Friday, November 7, 2014

Judiciary doing its best to limit presence of cartels at auctions

The judiciary is doing its best to limit the presence of cartels at court auctions.
“We have had many complaints from the public about syndicates (tricking and intimidating them),” said Federal Court corporate communications and international relations division head Mohd Aizuddin Zolkeply.
“We want to help the genuine buyers because the syndicates are interfering with the system.
“Steps must be taken to improve the auction process because this involves millions of ringgit,” he said.
Kuala Lumpur Court senior assistant registrar (administration and implementation) Mohd Hirman Ab Raub said the court followed the practice of Thailand’s Legal Execution Department and had a room for bidders to wait in before an auction.
“After a bidder has registered, he or she waits in the room before the auction so they will not be disturbed by any syndicate members,” he said.
Two real estate agents interviewed, however, said that too was open to manipulation.
“Cartels get leaked information such as the contact numbers of registered auction bidders and can still pay them to withdraw,” they said.
Mohd Hirman said other steps taken to reduce interference by syndicates included limiting the participation of real estate agents as bidders and the presence of family members.
The auction room can only hold 30 people comfortably.
Mohd Hirman said there were 1,240 court auctions in 2012, 1,136 in 2013 and 527 from January to August this year.
“Most of them involved houses,” he said, adding that the bank or plaintiff who applied to auction the property must pay 5% for the first RM10,000 and 2.5% on the remaining auction price as commission to the court.
“This commission will go to the Government as revenue,” he said.