Police have received 16 reports against two property development cooperatives based in Subang Jaya, Selangor, over a scam involving non-existent affordable housing projects with total losses amounting to RM13.6 million.
- Two property development cooperatives in Subang Jaya involved in scam
- Datuk CEO and chairman of first and second cooperatives, respectively
- Contractors offered projects building affordable homes nationwide
- Victims cheated of performance bonds between RM300k and RM2.3m
- Projects turned out to be non-existent
Bukit Aman Commercial Crime Investigation Department (CCID) director Datuk Seri Amar Singh Ishar Singh in a statement yesterday said the police received reports against the cooperatives and arrested an individual with the title of ‘Datuk’ on Feb 7.
“The Datuk is the 52-year-old chief executive officer of the first cooperative and chairman of the second cooperative.
“The suspect claimed that he was appointed as an agent for both cooperatives to appoint interested contractors to build affordable housing projects nationwide.
“We received 16 police reports between 2014 and 2017, involving both cooperatives, with losses amounting to RM13.6mil,” he said in a statement on Tuesday.
According to Amar, the suspect’s modus operandi is to offer contracts to contractors to build affordable homes nationwide.
“He will bring potential victims (contractors) to actual project sites and even show them relevant documents to convince his targets that the projects are genuine.
“Acting on instructions by the suspect, victims will then pay a performance bond between RM300,000 and RM2.3 million to the cooperatives.
“After payment is made, the victims will sign a joint venture agreement with the cooperatives, which supposedly guaranteed them projects nationwide within 18 months.
“However, after 18 months, the victims never received instructions to commence with construction work,” he said.
Upon checking, the victims discovered that the projects promised by the suspect did not exist.
“Via the first cooperative, the suspect offered construction contracts for the projects in Kedah, Negri Sembilan, Pahang, Perak and Johor while through the second cooperative, he offered contracts in Melaka, Kedah and Perak,” Amar added.
He revealed that the suspect was still under remand for further investigation and did not rule out that more individuals would be detained in the near future to assist in the investigations under Section 420 of the Penal Code for cheating.