Builders warn of dubious scheme
Published on: Friday, September 29, 2017
Kota Kinabalu: Sabah Housing and Real Estate Developers Association (Shareda) has raised a fresh alarm over an alleged Ponzi scheme involving bogus property development projects in Sabah.Its president Chew Sang Hai said he learnt the number of investors in the scheme continues to rise and about 2,000 more from China, many of them high profile figures, are expected to sign up next week."I'm very worried. (They're) very high profile. Last time, I was told there were a few hundred (potential investors from China who came to invest) and now there's more," he told reporters after opening the Propex 2017 at the Sabah Trade Centre, Thursday.
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He said the investors do not invest in actual properties but purchase shares from a so-called company.The company's modus operandi involves putting out an attractive advertisement via social media such as WhatsApp about some development taking place. In one particular case he said it involved a so called property development in a 1,000-acre land in Karambunai."The ad is fantastic. It tells about a certain big project and anyone can buy its shares. They don't buy the property. Just the shares of the company. The so -called property or property development is only a product in the scheme. So anyone can introduce the scheme to friends.
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It's a multi-level marketing," he said.But Chew said Shareda suspects the scheme is nothing more than a scam and advised potential buyers to first find out if the company's prospectus has been approved by the Securities Commission to enable it to sell shares to the public.
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He said Shareda had also brought up the issue to the attention of the relevant State and Federal government agencies including the Malaysian Communications and Multimedia Commission (MCMC).Apparently, Chew said there is not just one scheme but many."Many Ponzi schemes were launched through the digital media and many overseas and local investors have actively participated. Shareda appeals to the government agencies like the MCMC to tackle them before they cause a disaster to our state," he said. He also called for amendment of the Housing Developers Act to ensure strict control of digital media promotion of properties.He stressed that Shareda's biggest worry is when the scheme goes bust, it will not only cause so many investors to feel cheated but also tarnish the reputation of genuine property promotions.He advised buyers to only deal with Shareda members to avoid problems.Earlier this month, Chew said a huge property development allegedly near the naval base in Sepanggar was heavily promoted online. He reportedly said Shareda had checked and found out found there had been no submission to the local authority for such a project in the area.Stay up-to-date by following Daily Express’s Telegram channel.
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