The investors lodged a complaint with the CAD (Commercial Affairs Department) but the CAD officer told them to see a lawyer and take a legal case. One investor went to see the Member of Parliament and was advised to lodge a complaint with CAD.
Why are our public officers not doing their job? They seem to be passing the buck around. One point to the other. The poor citizens, having "lost" their money, have to go on a merry go round. It seems that they have to carry out their own investigation.
It is the duty of the CAD, on receiving several similar complaints about this land banking company, to carry out an investigation. At the least, they should ask the land banking company to give an explanation, so that the CAD can decide if there is a potential case of cheating. If so, they should carry out more detailed investigation to gather evidence and charge the wrong doers in court.
If the investigation shows that there is no cheating, it will then be appropriate for the CAD to advice the investors to take up a legal case for specific performance.
I suggest that all the affected investors should get together and collectively go to see a Member of Parliament. If you go togther, you will be able to bring your point across more clearly to the MP. Ask the MP to write to CAD to carry out an investigation.
After refusing the honor the promise to repay the earlier investors, the land banking company continue to sell the product to new investors. Will this become a ponzi scheme?
I am worried about the future of Singapore. If our public servants and elected leaders do not carry out their duty, things will get worse. There will be more cases of cheating.
Is it due to lack of manpower in CAD that they cannot carry out any investigation? Or do we now have officials that do not like the ground work and prefer to sit behind a desk and write reports?
Tan Kin Lian
I am worried about the future of Singapore. If our public servants and elected leaders do not carry out their duty, things will get worse. There will be more cases of cheating.
Is it due to lack of manpower in CAD that they cannot carry out any investigation? Or do we now have officials that do not like the ground work and prefer to sit behind a desk and write reports?
Tan Kin Lian
M4r Tan,
ReplyDeleteThe MP and the civil servants want to collect big salaries and to work behind the desk. They do not want to do the ground work. They learn how to point figures at another department, so that they do not have to take charge. They want easy life.
It is 2 separate matter. One is a criminal case, CAD against land banking company, the said company can be fined, directors jailed etc, but nothing to do with recovering investors funds.
ReplyDeleteThe investors would need to initiate a civil action in the courts to recover what ever they can.
2 separate things Mr Tan, you cannot lump everything together.
First world Singapore has far too much red tape and bureaucracy in the government sector and terribly lack of protection for investors. I wonder when will this be reported BIG on the news.
ReplyDeleteSomehow we seem to hear more and more of these stories where people who need help get the run-around from officials. Where does the buck stop in this country??
ReplyDeletemr tan you really dare to say out your views, which i think is honest opinion as well.
ReplyDeleteif you are a mp i think you will help your residents very much.
hope that bad people will not try to destroy you. hope you can be alert.
all the best and take care and good luck.
heavens knows.
If CAD takes this up. Then they sabo MAS, bcos MAS did not really investigate the structured product cases as cheating cases. So they gotta take the easy way out by following the precedent set by MAS. Ask the investor to go investiagte themselves.
ReplyDeleteThe government want to promote a business friendly environment to the extent that it allows companies to cheat. Where is the moral values and integrity?
ReplyDeleteI think this might be something even more scary -- incompetence. Maybe CAD don't even know what their job responsibilities are.
ReplyDeleteI do find it odd that illegal gambling is regulary shut down but that these scams which offer no chance of return cannot be prosecuted. At least with illegal gambling you can win sometimes.
ReplyDeleteMP refer the investor to look to CAD. CAD refer the investor to look for a lawyer.
ReplyDeleteIt is not passing the buck around and investors are not going for a merry go around, unless the lawyer ask investors to go back to either MP or CAD.
The actions of the MP and CAD were correct -> they point the investor to the relevant people to handle the matter.
This is a contractual issue and rightly should be handled by a lawyer. Legal issues are settled in the court of law.
In the first case, the investor should get his own lawyer and sue the company for breaching the contract. If the investor had done his own homework, there would be no issue.
Let's not make a mountain out of a molehill and blame the government for every single misfortune that an investor faced or when an investor did not get what he or she wants.
Hi Dandy (11:22 AM)
ReplyDeleteI am aware of the two separate matters. I am asking CAD or the Government to carry out their duty and investigate if there was cheating.
The recovery of the money by the investors is a separate matter. I know the law (better than our public officials) and I am not as stupid as you assume me to be.
To Anonymous 1:56 AM
ReplyDeleteIf cheating is alleged, it is the duty of CAD to investigate the complaint. If it involves many people, the need for investigation (and press charges in court), is strengthened.
If someone is killed, it is the duty of the Police to investigate and find out who the killer is.
These are not civil matters.
Mr Tan,
ReplyDeleteYou mentioned that in this case of land banking, there was an option (guarantee) that the investors can withdraw after 12 months.
In the first place, when something is being guaranteed, it should be honoured without fail.
Now this option is not given, so there is a breach of contract. Why is there a breach? I think that company knows very well.
For the investors to find out, they have to seek help from higher authorities such as CAD which probes if cheating has occured and legal experts for a breach of contract.
I don't even know why people invest in such nonsense. do people have such a surplus of money that they invest in every vehicle that have even an iota chance of fraud? really, every single phone call you get for (travel, land banking, investment) just turn it down. and avoid those promoters along orchard road trying to part you from your money.
ReplyDelete-chris
This shows that financial market in Singapore is full of swindlers. MAS needs to take more decisive action to ask the swindler to compensate the investors.
ReplyDeleteCAD is under Home Ministry. I suggest all those affected go to Bishan to see our DPM and Home Minister Mr Wong Kum Seng. He should bear the responsibility of looking after the well being of his citizens as DPM and HM.
ReplyDeleteJohn
Lesson:
ReplyDeleteDo take care of ourselves, financially and physically by avoiding dangers and temptations (devils in disguise).
Prevention is better than cure.
If we can do that, Singapore is quite OK and safe compared to other places. Cannot expect too much lah, unless you are in heaven.
Welcome to the real world of S'pore government bureaucracy!
ReplyDeleteMerry go-around and passing the buck between the various agencies seems to be the way the system works unless we have a complete overhaul of the government as had happened in Japan.
A few months ago, I called HDB on CPF withrawal issues for DBSS flats which will be TOP a few years down the road and have some private components such as progressive payment scheme. HDB referred me to CPF who in-turn referred me back again to HDB - in effect creating a closed loop.
In short, we have two govt agencies who did not wish to give a committed answer of what should be the pre-vailing govt policy on my queries. I eventually gave up and end up buying a HDB Resale flat instead where the policies are more clearly defined.
You have to experience it yourself to really believe it how efficient our civil service is!
Hi,
ReplyDeleteTo share my experience with the CPF board. I bought my condo in 2001 so do I subject to the CPF Housing Withdrawal Limits? Obviously not. But last year I just happened to find out that I was subjected to the withdrawal limits of 128%(if I can remember the figure correctly). I was shocked and thus checked with the CPF Board.
You know what's their reply? They said I refinanced my mortgage loan in 2005, so I would be subjected to the year 2005 CPF withdrawal limits. What nonsense was that? Refinance of a mortgage is definitely different from buying a new property. How could they have lumped it together? Obviously the CPF board wants to keep our CPF in their treasury, so keep on finding excuses to limit us touch on our CPF ordinary and medisave accounts.
I pity those who are buying expensive properties with the CPF money, good luck to them!
Check out this wikipedia entry. Talks about Singapore being markets where UK land bankers are selling their wares as we are a "naive" market.
ReplyDeletehttp://en.wikipedia.org/wiki/Land_banking
Mr Tan,
ReplyDeleteThe 12 month option deal sounds familiar, I think I might have gone to their seminar before. Care to reveal the company's name?
I guess Singaporeans who are looking at diversifying / hedging their portfolio with lands should have the right to know. You're a reputed advisor and figure in may SGeans eyes, you don't wish to leave them hanging right?
how come there is no lawyer who cares to give some advice? sharing of knowledge is a virtue. hope some lawyers can share their views for such scenario.
ReplyDeleteThis question to a UK council demonstrates that some Singaporeans are quite naive. Would you ask such questions of Jurong Town Council ?
ReplyDelete"I am residing in Singapore and am on the verge of buying 47 plots.
........
I am about to pay British pounds 253,125 [S$600,000] next week, so I would very much would appreciate it if you could give me some facts and even your thoughts on which way I need to move or whether in fact I should continue to invest."
http://www.whatdotheyknow.com/request/10130/response/24695/attach/7/Green%20Belt%20Enquiry%20Concorde%20Village%20070409.htm.html
Some LandBanking companies are now calling or renaming themselves as Pre-Deveopment Banking or Development Banking so as to move on and break the jinks of being labelled as LandBanking scams in away.........
ReplyDeleteCan anyone name all the LandBanking companies operating directly here or through their proxies in Singapore?
ReplyDeletelisten guys,wen Mr Tan post smething intrestg reading IN HIS BLOG,be rspectful,in tis article alone,many 'agents' appear,ea wif own agenda,e content is easy reading,informative & holds 'value',yet some oth challenge & try to be 'clver',dot do it,respect oth blog,else,just leave,i still rspect Mr Tan & I AM E ONE WHO CHOOSE TO COME TO HIS BOLG...for my reading pleaseur...
ReplyDeleteAnother good UK article on Land banking here
ReplyDeletehttp://www.learnmoney.co.uk/advice/advice-87.html
Selected quotes.
"For some reason the land banking companies have aggressively targeted the Asian community"
"The sad truth is that there's a 99% chance you're being (legally) set up to buy land which has little or no chance of receiving planning permission over the next 20+ years. Although of course the land banking firm will give the impression that planning permission will soon be granted."
"For most investors dealing with a land banking firm will result in them losing the majority of their money. And I can't really put it simpler than that."
The post after Chris by Anon on re-labeling, do you know why?
ReplyDeleteTo my knowledge there's only one firm, from most of the seminars i've been to, that confidently uses that term.
Btw, you got the term wrong for obvious reasons.
Why would a commission based land banking salesperson in an Asian shopping centre have unique access to information worth millions of dollars when nobody in the UK is exploiting it?
ReplyDeleteHi there
ReplyDeleteI'm writing a news piece for Homebuilding & Renovating in the UK , reporting on the worrying increase in the sale of these plots over the last year.
I'm looking for people who would like to be quoted within the feature, and share their experience of buying – or almost buying – one of these plots.
Please get in touch at melanie.griffiths@centaur.co.uk
Many thanks.
Melanie Griffiths, Homebuilding & Renovating
Mr Tan
ReplyDeleteThis investor in Canada claims to have got his Land Banking investment plus his interest back by protesting loudly. Perhaps Singapore investors should do the same?
http://www.ripoffreport.com/Investment-Brokers/Profitable-Group-Pro/profitable-group-profitable-798aa.htm
I have been approached by a land banking sale agent and rejected it flatly for the following reasons:
ReplyDelete1.The agreement drawn by the land banking company has no law binding for both parties. It is a useless paper for boosting of sale by the company.
2.The land banking company has no profit/loss report annually. We have no way to check its operation and most important of all, we have no way to find out how the promises be realized.
3.Worst of all, we have no way to check the land banking company still exist or not. No law to stop them from declare bankruptcy and hold them responsible for investors loss.
CAD should put all land banking companies on track and check any cheating case has arise. Wake up CAD, obviously there is something wrong with the setup. CAD cannot keep an blind eye on them.
Scam NO.1 - "Cheating Money using Business Setup As a Cover"
ReplyDeleteSomeone ask you to invest money to become partners of a business.....you have a contract signed without a legal professional in present.....A company was set up and money was paid to him to takeover part of the existing biz.The person who received your money later denied that you have given him any money (even you have or did given to him) for the investment.
You make a police report to expose the scam......Questions is .....Would the police interfere on this matter?Answer is Yes and No......
This person, Chan Chye Hock or Commonly known as Michael Chan is using his company name LE 7 Enterprise as a franchiser to cheat investor in believing of setting up a company with him as a franchisee and invested the money and pay to him the monies personally later denied there is such an arrangment.
Public who are ignorance about this, are the victims of such investment scams in Singapore . This is consider as white collar scam, current resources to deal with such scam is limited by the lack of expertise in the current system.
The police will normally consider this case as business dispute as the person know that when he use his company to front his personal act on this matter, police will not likely to involved in this matter.
This is a major Loop hole where relevant authority need to look into it so as to protect innocent Public so that they do not fall as a prey to this investment scams tactics. Public interest is affected by this individual.
I DO NOT WISH INNOCENT PARTY LIKE ME TO GET CHEATED IN THIS WAY...AUTHORITY HELP IS GREATLY APPRECIATED.