Time for decisive Action to deal with Costly Decisions by the PHOA

Photo: Brett Jordan (Unsplash)

Fellow Homeowners and Residents on the Pecanwood Estate, we believe that most people of sound mind living on the Estate are fed up with the arbitrary increase in levies that does not take into account where we are currently and what should be prioritised as projects.

This, despite the fact that we are still reeling from the shock of a recent 8% increase in levies and we now have to contend with an imminent introduction of a Special Levy to the tune of R15k for each household.

We all know that it is due to incompetence on the part of the PHOA Board and the Estate Manager. The problem extends beyond incompetence and reckless disregard of legislative requirements, particularly the MOI.

Those who have read the e-mail from the Chairman of the Board announcing the introduction of a Special Levy with effect from the 1st of August 2022 must be wondering whether that is a mistake or a lapse of judgement on the part of the Board. In terms of the MOI the Board is expected to present the proposal at a Special General meeting to get approval from Homeowners. Instead, we are told that the Special Levy will kick in on the 1st of August as a foregone conclusion and a meeting has been scheduled for the 14th of July 2022 to get Homeowners to vote on 3 out of a number of projects that have evidently led to the decision.

The Board has decided that we are downright too stupid to understand the other projects and consequently, they will be funded via an irregular process. Talk about putting the cart before the horse, and we have a perfect example.

The recent 8% increase in Levies was far beyond the inflation rate and yet it is an undisputed fact that our Levy is far higher than that of similar Estates. The tragedy in all of this is that the unaffordable and unjustifiable Levy increases together with the Special levy will make investing on the Estate unattractive.

Potential Buyers of properties will be turned off by the inordinately high levies, Special levy and the 1% Stabilisation Fee that is payable by a Buyer of property on the Estate. The frequently claimed benefit that the upgrade to the Golf and Country Club and the Boat Club will have a positive impact on the values of our properties will remain a pipe dream as we have reached a point of no return with all these costs associated with owning a property on the Estate which has become a serious deterrent to potential investors.

What also needs to be taken into account is the fact that the Golf and Country Club and the Boat Club are assets that belong to the Malaysians. The question to ask is what has the PHOA proposed to the Malaysians so we can reduce the financial burden on the Homeowners?

We love the facilities in question but there has to be a limit as to what we are prepared to invest in their upkeep. The most disturbing observation is that the projects on the Golf and Country Club and the Boat Club, should be funded through a separate funding model relying solely on the “User Pay Principle” or alternatively the shortfall must be funded by the owners of the assets.

We have repeatedly asked the PHOA to explain a number of high Cost elements in their spending patterns and to date we have not received satisfactory answers or no responses at all. All the sweet talk about transparency and an open- door Policy are merely a smokescreen to pacify us. Ask them for a copy of the Malaysian Lease Agreement and you will then realise that Good Governance and Transparency are an elusive concept to the PHOA Board.

Now it is time for Action to address the poor decision-making process, flagrant disregard of the law, particularly the MOI, and mismanagement of Levies. The proposed actions are:

1. To vote against the R15k Special Levy on the 14th of July 2022. The alarming thing is that the PHOA has singled out 3 projects to vote on. We don’t know how they can justify Spend on the other capital projects without approval from Homeowners. The MOI is explicit that all projects must be tabled before a properly constituted meeting for voting / approval by Homeowners.

2. Initiate a Group or Class Action through CSOS against the irregularly introduced levy increases that go beyond what Homeowners are liable for. That means all of us on the Corruption Watch Platform must fervently recruit like-minded individuals to save the Estate and fight the mismanagement of Levy income and disregard for Good Governance and relevant legislation. The Board is taking advantage because of a high degree of complacency and passiveness on the part of Homeowners. We may have to create a Fund to enable us to get proper legal advice in our fight. The number of people that respond to confirm active participation will determine how much each participant may have to contribute. Please confirm via the relevant e-mail address and you are also welcome to present other suggestions that will fast track our project to clean up the current mess. *

3. Initiate Action through CSOS to get the information that the PHOA is refusing to share with Homeowners as well as a copy of the Lease Agreement with the Malaysians. The PHOA Board has done nothing to ensure that the current untenable business relationship with the Malaysians is resolved and the problem will not go away until we engage the Malaysians firmly and robustly to get a “Win- Win” outcome. At the rate things are going, it is not inconceivable that soon we will be paying a Levy of around R10k. If you add the Special levy to the normal Levy, each household from the 1st of August will be paying around R9k per month.

Lastly, any other ideas that will enhance our success will be most welcomed. The e-mail address to use is: Pecanwoodcorruptionwatch@gmail.com

* All CSOS applications are free of charge. The R50.00 fee per application has been waived by CSOS. The legal fees referred to is in addition to the free legal advice provided by CSOS.