I read an interesting article here: Gangster Contractor, and wonder if those of you who are living on Penang Island have experienced the same thing:
The process goes like this: The developer who is either most probably involved in such activities or has come to an agreement with local gangs for not causing trouble within their given area, fails to inform potential buyers that they will have to deal with these gangsters for the renovation work.
The gangsters will then set up tables at every elevator entrance to monitor who goes up and down when OC is obtained. They provide sand and tiles and one even has to get cooking gas from them. They will set up a show unit and charge exorbitant fees for their renovation projects and should you decide to take from them, you will not have to pay any renovation deposit.
They will indirectly extort money from the residents by blocking any other contractors from carrying out their work. The contractors will eventually request this payment from the owner or include it into the bill.
It looks like a syndicated extortion bid of the highest order.
These gangsters make an average of RM500 to RM1,000 per unit if we just decide to pay the extortion fees. They will make more if we decide to engage them to do the renovation project. They will not move out until at least 90% of the residents have moved in. Just do the math how much they will make if there are 500 units.
I hope the new Penang MPs will be looking into this soon.