KOTA KINABALU: A legal question has emerged over Kota Kinabalu City Hall’s (DBKK) authority to auction unclaimed vehicles that may still be under bank financing.
Non-governmental organisation Gerakan Kuasa Rakyat Malaysia (G57) has questioned the legal basis of DBKK’s policy to forfeit and auction vehicles that remain unclaimed after 30 days, arguing that such action could conflict with the rights of financial institutions under existing hire-purchase laws.
G57 chairman Datuk Zulkarnain Mahdar said many vehicles towed for parking offences were likely still subject to hire-purchase agreements, under which banks retain a legal interest in the vehicles until financing obligations are fully settled.
He questioned whether city by-laws could override the rights of financial institutions by allowing ownership of a financed vehicle to be effectively terminated and transferred through a public auction.
“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?” he said in a statement yesterday.
His statement came after Mayor Datuk Seri Dr Sabin Samitah said vehicle owners faced the risk of having their vehicles forfeited and auctioned if they failed to claim them within 30 days.
He said 52 vehicles had so far gone through the forfeiture process since DBKK began its towing operations, after their owners failed to settle all related payments, including outstanding parking compounds, before the vehicles could be released.
Since the towing operations began in April, a total of 1,385 vehicles had been towed, he added.
