Investigative Journalism and Learning Hub - Waratah Strata Management ignored complaints about their corrupt actions at SP52948 general meeting on 26 November 2014

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From: SP52948 owner
To: Billy Cheung BCS Strata Management, Greeg Freeman Pica Group
CC: Russell Young BCS Strata Management
Subject: REPEATED HIGH PRIORITY CONFIDENTIAL REQUEST: Immediate access to eight SP52948 files
Date: 26/11/14 21:59

To management of BCS,

Thank you for organising one of the most corrupt AGMs for Strata Plan 52948 tonight.

Lack of professional actions by Mr. Young and Cheung amounted to full non-compliance with your duties and obligations expected of a strata manager.

They even failed to provide access to the evidence of the quorum of AGM 2014 and directly proved that at the beginning of the meeting, due to unfinancial owners from townhouses, the meeting was invalid and Chairperson was not entitled to run it or vote! In his own words, Chairperson of the EC did not repay for illegal water and gas usage and neither did any townhouse owner.

And then colluded with EC to "approve" Motion 19 for retrospective "correction" of your direct involvement in non-compliance of Special By-Law 13. That was to provide direct benefits to Chairperson Bruce Copland and selective townhouse owners.

Therefore, I did not provide "allegations" as Mr. Cheung likes to call it, I actually proved the "real value" of the EC and BCS co-operation.

Where is the obligation of BCS to act in accordance with:

Property, Stock and Business Agents Act 2002

Property, Stock and Business Agents Regulation 2003, Schedule 6

Department of Fair Trading Rules of Conduct for Strata Schemes:

1. Knowledge of Act and Regulations

2. Fiduciary obligations

3. Honesty, fairness and professionalism

4. Skill, care and diligence

5. High pressure tactics, harassment or unconscionable conduct

6. To act in client’s best interests

8. To act in accordance with client authority

10. Licensee must ensure employees comply with the Act and regulations

11. Conflicts of interest

12. Referral to service provider

14. Inducements

15. Soliciting through false or misleading advertisements or communications

18. Representations about the Act or regulations

By avoiding to sign on these items, BCS proved direct corruption:

- no conflict of interest existed in the past or currently, or is likely to arise in relation to offering improper of privileged services to any SP52948 owner, employee, contractor, agent, or member of the Executive Committee;

- the Tenderer, any related entity, or their respective officers, employees, agents and subcontractors, are not currently, and have not in the previous 10 years, been subject to or involved in any investigations, sanctions, court proceedings, audits and the like in relation to anti-competitive conduct, bribery, or corruption.

Mr. Cheung claimed he was open to fairness and proper procedures and yet, he bluntly provided false comments to me and the whole owners corporation about access to strata documents as per S108 on 17Nov2014. Giving access to the computer does not mean BCS gave access to documents as requested.

Mr. Russell was obviously advised not to seek signature on the day as he visited Mr. Cheung's desk and came back "empty handed". I saw him doing it.

But that is not new tactics. Raine & Horne Strata Sydney has been doing it for long. Few examples from last year are herewith.

On 25/11/14 18:25, SP52948 owner wrote:

Hello Billy,

Thank you for the response.

In regards to your suggestions that that the points I raised lacked supporting evidence:

- In the email sent yesterday I provided evidence that Mr. Bruce Copland coluded with Mr. Greg Freeman to bypass the legal process for tendering and selecting a Strata Manager in 2011.

- In the minutes of the 2004 AGM, a motion was approved to renegotiate the Strata Management agreement. This has not been done.

- In previous emails I have provided evidence that nine-to-ten of the accounting figures on the balance sheet for FY2014 are erroneous.

- Since the last AGM, and in previous emails, I have provided evidence that the accounting figures on the balance sheet for FY2013 were erroneous. No corrections have been made.

You did not take any action in regards to your office failing to satisfy the SSMA 1996 Section 108. It is a legal requirement to fulfil these obligations.

Tomorrow, I expect all documents I paid for to be handed to me in person at the AGM (see attachment).

On 25/11/14 09:44, Billy Cheung wrote:

We have been made aware of the various allegations you have made against our office in regards to the management of your scheme and also the so called deal or corrupt conduct in regards to the tendering process of the caretaking agreement and the strata management agreement.

BCS Epping have been working closely with the Executive Committee in regards to the renewal of our agency agreement and we have also offered to the owners corporation the service of our sister company, Estate Managers in the tendering of the caretaking agreement of your building. In the instance where BCS and Estate Managers had a vested interest in the tender on the above services, it was essential that this process was managed solely by the Executive Committee to avoid any conflict of interest. The EC has assured that this process is carried at arm length from the managing agent and its associate company.

If you intend to pursue those allegations, you are entitled to lodge your complaints and submit concrete evidence to regulatory bodies for further investigations. We recommend that you cease the above defamatory remarks in public until all the facts have been tested and proven.

In regards to the various motions you have submitted, we have sought legal advice on the validity of the so called motions and explanatory notes which you submitted. Based on that advice, the agenda was drafted to allow an orderly and productive meeting.

As the Licensee in Charge of our office, I will be in attendance at your AGM to assist the Owners Corporation on any queries they may have.

I look forward to meeting the Owners Corporation tomorrow for a fruitful and engaging meeting.

Regards

Billy Cheung

Branch Manager

Body Corporate Services

Level 2, 51 Rawson Street, Epping, NSW, 2121

Locked Bag 22, Haymarket NSW 1238