Flat owners responsible for management reform
Property ownership comes with rights and responsibilities. But in Hong Kong, these responsibilities are often not taken as seriously as they should be.
Property ownership comes with rights and responsibilities. But in Hong Kong, these responsibilities are often not taken as seriously as they should be. Although legislation has been put in place to help owners form corporations to discharge management duties properly, few households pay attention to how they operate. This leaves room for corruption and malpractices.
A common problem is bid-rigging on tenders for large building maintenance work. Faced with growing complaints, the government has proposed tightening the rules on owners' corporations. This includes raising the quorum for meetings to discuss maintenance projects from the current 10 per cent of owners to 20 per cent. Decision-making would also require a higher threshold, up from 50 per cent to 75 per cent.
The proposals are a step in the right direction in that the enhanced participation of owners can guard against kickbacks and other irregularities during the tendering process. This is particularly important because thousands of old buildings are required to undergo maintenance under a city-wide mandatory scheme approved in 2012.
Technical as they seem, the proposed changes are pivotal to effective management and operation. Some disputes have stemmed from rigid and unclear rules governing owners' corporations. There have been incidents in which chairmen resigned to evade liabilities. It is good that officials are being responsive and proposing changes to handle such scenarios.
The government can only provide a statutory framework for fair and effective building management. If the framework is found to be inadequate, changes should follow. This is what a public consultation is seeking to do.
Building management is ultimately the responsibility of owners. Regrettably, most equate their duty to paying management fees on time. Indifference and loopholes mean those in charge can push through deals that put owners' interests at risk. Owners should study the proposals carefully and submit views in light of their experience.