Let BCA maintain active oversight of management corporations

I agree there are loopholes in governance and transparency even if a management corporation complies with the Building Maintenance and Strata Management Act. (“Issues of governance, compliance and disclosure with condo management law”; May 13),

Due to the oft-cited rationale that a management corporation is voted in and empowered to act on behalf of the residents, it may sometimes execute decisions that are not fully transparent or partial and, in rare cases, undermine residents’ well-being.

It seems the Act is subject to interpretation by individual management corporations and this power can be abused if there is no active oversight by the Building and Construction Authority.

For example, I witnessed how the management corporation of my previous condo, despite disagreement from residents, used estate funds for legal fees to get an apology from a particular resident. These developments and the unilateral decisions in this issue were published in the monthly meeting minutes over the course of a year.

It culminated at the annual general meeting (AGM), when the management corporation authorised the managing agent and security guards to remove the resident when he was articulating his side of the story.

Eventually, the management corporation published in the minutes that it had incurred more than S$10,000 in legal fees, which was absorbed by the sinking fund, as there was no affirmative resolution. It did not explain the use of estate funds for legal fees despite residents’ disapproval and the use of force at the AGM.

An isolated occurrence such as this shows how some management corporations, empowered by the authority provided under the Act, can act in a high-handed manner and utilise estate funds unilaterally.

Often, it may be a case of poor advice by the managing agent, whose commercial interests take priority to ensure a contract renewal.

In such circumstances, other than calling for an internal extraordinary general meeting, which requires a substantial quorum, it seems there is no other expedient external redress channels for amicable dispute resolution.

In this respect, the Act should allow the governing authority to maintain active oversight of management corporations and render them accountable, to both the authority and residents, for their actions, especially in financial management.

It should also allow the authority to investigate and take punitive measures against management corporations and rogue managing agents.

This would improve governance and transparency, as well as further collective interests and harmony in private estates, whose residents would otherwise live at the whim of the management corporation.