We have been saying it all along. It is a conflict of interest for anyone interested in en bloc to sit on the MC. Here is a published letter on ST Forum showing that other condo owners recognise this situation too! It proposes an auto opt out for any one who is for en bloc to declare their interest, thereby preventing them from sitting on the Management Council of any estate.

SC on MC? Never again!

WHEN ESTATE UPGRADING IS THWARTED BY...

En bloc roadblocks

IN RECALLING the en bloc saga of Gillman Heights, the chairman of its sales committee stated that the condominium had to be sold en bloc because it was old and falling into disrepair ('No regrets, despite dear memories of Gillman'; Sunday).

This is a view commonly held among pro-en bloc residents, and it should be addressed. If an estate is old, it can be upgraded using the sinking fund, or through a special one-time contribution by residents. Such upgrading is far cheaper than the potential loss for owners from a collective sale.

As many former Gillman Heights residents quoted in the special report ('For better or for worse'; Sunday) ended up paying more for their new homes - some in the hundreds of thousands of dollars - those who live in old estates worth preserving should learn from such experiences.

There are pro-en bloc residents who often obstruct the improvement of an estate because they wish to profit from an en bloc sale. They prefer to see the estate fall into disrepair so they can cite the high costs of replacing old pipes, water tanks, old tiles and lobby areas subsequently. Such en bloc proponents join management councils and oppose attempts to improve the estate.

While many may argue that the decision on such an issue is best left to subsidiary proprietors, the reality is that few are keen on running for office in any estate, and fewer still are willing to argue with loud neighbours who harbour an agenda.

So, this issue must be solved by a built-in safeguard, which should require residents who wish to run for office to declare that there is no conflict of interest. There should be an automatic opt-out clause for those who harbour an interest in organising an en bloc sale.

There must be a law spelling out a conflict of interest to prevent residents who intend to lobby for an en bloc sale from sitting on a management council or any other official body of the estate that may influence the en bloc process.

A management council, by definition, must work towards the good of preserving, repairing and enhancing the estate and if this is so, pro-en bloc residents should be ineligible for office.

Grace Francis (Ms)
Published in ST Forum Page

Here is the reply to this letter from Min Law where the Ministry agrees that there should be no conflict of interest for those who choose to sit on the MC - 15 Feb 2011

En bloc interest: Law requires conflict of interest declaration

En bloc interest: Law requires conflict of interest declaration

MS GRACE Francis suggested that those interested in running for office in an estate declare non-conflict of interest ("En bloc roadblocks"; last Thursday).

With the amendments to the Land Titles (Strata) Act in 2010, candidates standing for election to the collective sale committee (CSC) and any existing CSC members are required to declare any conflict of interest. This includes any direct or indirect interest in entities such as property developer and property consultant, and the extent of ownership they or persons connected to them (such as immediate family members) have in the strata development.

Ms Francis also commented that there are pro-en bloc residents who join the estate's management corporation (MC) council and oppose attempts to improve the estate.

Under the Building Maintenance and Strata Management Act, the MC council is duty-bound to ensure that the estate is well-maintained and kept in a state of good and serviceable repair.

Should the MC council fail to perform its duties, subsidiary proprietors/owners can seek redress through the Strata Titles Boards or the court to compel the MC council to perform its duties.

Chong Wan Yieng (Ms)
Director
Corporate Communications Division
Ministry of Law