KOTA KINABALU: Civil rights group Gerakan Kuasa Rakyat Malaysia (G57) has challenged the legal authority of Kota Kinabalu City Hall to forfeit and auction towed vehicles, warning that the practice may infringe upon financial institutions' rights under hire-purchase laws.
G57 chairman Datuk Zulkarnain Mahdar questioned whether municipal by-laws possess the legal standing to override bank ownership rights on vehicles still under active financing agreements.
The challenge follows an announcement by Kota Kinabalu Mayor Datuk Sabin Samitah that unclaimed towed vehicles face forfeiture and public auction if owners fail to settle outstanding compounds and impound fees within 30 days.
"Under which ordinance or by-law is DBKK empowered to set aside the rights of banking institutions and proceed with forfeiture within only 30 days?" Zulkarnain asked in a statement on Wednesday (Sept 30).
He warned that auctioning financed vehicles creates severe legal risks for both lending institutions and prospective buyers, particularly regarding whether valid legal titles can be transferred when loan obligations remain unpaid.
According to city hall statistics, the council has towed 1,385 vehicles since launching enforcement operations in April. A total of 52 vehicles have entered the forfeiture process after remaining unclaimed past the 30-day deadline.
G57 urged the city hall to suspend all vehicle auctions pending a comprehensive legal review with key stakeholders, including financial institutions.
The NGO proposed that municipal authorities adopt wheel-clamping as a primary enforcement measure, reserving towing exclusively for repeat or severe traffic violations.
Zulkarnain added that the group has received multiple complaints from low-income motorists who rely on their vehicles for daily livelihoods, calling on the city hall to introduce instalment payment plans for outstanding parking compounds to assist affected vehicle owners.
