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[Jimmy-T]

Michael Lee, a strata manager and committee chair highlighted in the ABC TV Four Corners report The Strata Trap, has lashed out at the controversial d
[See the full post at: Strata Trapped: Manager lashes out at ABC]

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[StopfordKid]

I’ve watched the Four Corners episode and am fully supportive of what they aired – the system is a complete shambles and allows dubious schemes run by dubious individuals to infiltrate the system at all levels.

What I can’t work out, and wasn’t apparent to me in the Four Corners Episode, was:

(a) What was motivating Mr Lee to carry on like this – surely it wasn’t just some crazy power trip,

(b) What was his role at that building apart from being the committee chair (+ other committee roles). Is he also a property owner in the building? what are his other associated interests etc?, and

(c) Where else do his tentacles spread to – either directly or indirectly?

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[Jimmy-T]

StopfordKid wrote:

(a) What was motivating Mr Lee to carry on like this – surely it wasn’t just some crazy power trip,

We shouldn’t assume anything, but we know from other examples that the nexus whereby a strata manager keeps the committee in power, and the committee keeps the strata manager in a job, is prevalent throughout strata. Mr Lee was strata manager and chair, secretary and treasurer of that building.

The allegations of the owners agreeing not to pursue legal action against the developer for defects probably bear closer scrutiny but plenty of schemes have decided to do exactly that because litigation is always expensive bu not always effective.

 

(b) What was his role at that building apart from being the committee chair (+ other committee roles). Is he also a property owner in the building? what are his other associated interests etc?,

Yes, he is also an owner, or at least he said he was at that fractious meeting.

(c) Where else do his tentacles spread to – either directly or indirectly?

He and his wife have strata management companies and he is still operating in several buildings, as is William Wang, for that matter, while his appeal against being “struck off” is heard by the Tribunal.

 

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[Shortcrust]

These are excellent questions which were not raised let alone addressed in the program. I feel the issue of strata mismanagement by agents, committees and (from what I discovered on my short time involved in owning a strata unit), lethargic politicians needs a far deeper and wider investigation.

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[Jimmy-T]

Shortcrust wrote:

These are excellent questions which were not raised let alone addressed in the program. I feel the issue of strata mismanagement by agents, committees and (from what I discovered on my short time involved in owning a strata unit), lethargic politicians needs a far deeper and wider investigation.

You have seven states and territories each with their own very distinctive strata laws. Within that spread, you have corruption, conflict of interests, owner apathy and ignorance, defects, discrimination, self-interest and uncertainty.  “The Strata Trap” was a pretty good start at tackling a problem of Herculean proportions.

For what it’s worth, I think our politicians across Australia believe people who choose to live in apartments deserve what they get.  Just look at how they made Airbnb our problem, not theirs.

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[StopfordKid]

Thanks for the reply Jimmy. I wasn’t aware that he was the Strata Manager as well as everything else. It makes more sense now why he acted the way that he did.

That sort of conflict should be banned or at the very least it should be voted for approval at every AGM/contract renewal – obviously excluding the conflicted party(ies) and their associates, proxies and other hangers-on etc.

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[Jimmy-T]

It’s very difficult to police these situations, where someone just digs in, lies and cheats to defend their position. Add in the racial factor – where overseas and local ethnicities are getting a different set of “facts” from the actuality – and it is ripe for exploitation by ruthless individuals. Complaints on that front are often met with accusations of racism.

On top of that, the Tribunal is often remote from all this, with many Members having zero idea of how strata works (or doesn’t). Then you get the ridiculous situation where a strata manager and committee chair is removed because of corrupt behaviour, only to be replaced by a company nominally run by their spouse, who is given total control over the strata scheme as a statutorily appointed manager.

Strata schemes are, by statute, excluded from company law. Change that and penalise corrupt behaviour as a crime and maybe things will improve.

The two most prominent NSW strata managers who have lost their licences or contracts because of their behaviour in recent months are still operating as they wait for NCAT to hear their appeals.  Just think how much damage they can do in the interim.

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