{"id":1277,"date":"2014-12-27T16:56:27","date_gmt":"2014-12-27T09:56:27","guid":{"rendered":"http:\/\/alphapro.com\/funhouse\/?p=1277"},"modified":"2025-01-19T17:43:04","modified_gmt":"2025-01-19T10:43:04","slug":"pattaya-condominiums-cheat-owners-part-1","status":"publish","type":"post","link":"http:\/\/alphapro.com\/funhouse\/2014\/12\/27\/pattaya-condominiums-cheat-owners-part-1\/","title":{"rendered":"How most Pattaya condominiums cheat their owners Part 1"},"content":{"rendered":"

SI have heard from those in the know that up to 99 percent of Pattaya condominiums cheat their owners. Personally I don\u2019t think the figure is quite that high, but I do know many condominiums in my area have successfully ripped off their owners by embezzlement, by charging outrageous amounts of repairs or both.<\/p>\n

\"Pattaya
One of our lawyers once told us 99 percent of all Pattaya condomiums cheat their owners.<\/figcaption><\/figure>\n

I need to oversee the interests of our condominium owners. This is my job. Therefore it is my business to know how Thai employees rip off condo owners and to do my utmost to see that this does not happen here. This is part 1\u2013embezzlement.<\/p>\n

How Pattaya condominiums cheat their owners. \u00a0<\/strong>\u00a0Avoiding Embezzlement\u00a0<\/strong><\/h3>\n

Lesson 1<\/strong>: Suppose I ask all of you a single question? You live in your home country, whether it\u2019s in the United States, Germany, the United Kingdom, Australia or wherever. \u00a0 Would you leave $50,000 lying around in your home in full view of a new girlfriend you had just picked up. \u00a0From a bar, at Walmart or in the supermarket?<\/p>\n

If you are a rational adult you certainly wouldn\u2019t for several reasons. First, you haven\u2019t known the woman for a long enough period to be able to make an informed opinion as to her character. \u00a0Second\u2013fifty thousand dollars is a large enough sum to tempt a large amount of people you might meet into crossing the line. \u00a0Third, given that your new live in girlfriend is fundamentally honest with small amounts of money. \u00a0 Fifty-thousand dollars is a large enough sum to make her reconsider the price of her integrity. The bottom line is you simply wouldn\u2019t leave $50,000 lying around your place for the easy taking.<\/p>\n

So if this is true back in your home countries, then why would you ever allow your condo office employees such easy opportunity in Pattaya?<\/h3>\n

Especially when Pattaya has the seedy reputation it so richly deserves? With the huge discrepancies between what your typical office employee makes in a country such as the United States and Thailand allowing the condo manager or secretary to collect\u00a0\u00a0even 300,000 baht amounts to the same thing as leaving $50,000 lying around your home in the West.<\/p>\n

The solution is to completely remove the temptation by making it impossible for your office personnel to collect large sums of money \u00a0from your condo owners.<\/p>\n

You simply\u00a0require all condo owners to pay their maintenance fees and utility bills through direct payment to your condominium bank account.<\/h3>\n

As the old saying goes, there\u2019s nothing like putting and keeping the money in the bank. \u00a0You can require condo owners to pay direct deposits to the\u00a0\u00a0condo bank account. \u00a0They can deposit funds in person , through internet banking or by ATM.<\/p>\n

Paying by ATM Is easy because all your owners have to do is to key in the condo bank account and the amount of the invoice one is paying. A confirmation then appears on the ATM screen that indicates that it is the condo bank account after all. \u00a0The ATM then produces a receipt. \u00a0The condo owners can now bring the receipt to the condo office girl as proof\u00a0of payment.<\/p>\n

Not only does this stop embezzlement at the source, it also can make a vast improvement in your condo’s cash flow. \u00a0 We did it here at my condo under my direction and it worked like gang busters. \u00a0Try it, and if someone doesn’t like it tell him to stick it where the sun doesn’t shine.<\/p>\n

Lesson 2<\/strong>. Do not trust a Thai \u201cprofessional auditor\u201d or CPA to uncover the embezzlement in your condo.<\/h3>\n

Thai authorities require a yearly audit from all condo communities. \u00a0 \u00a0From my understanding of Thai law such audits are geared around profit and loss. \u00a0In my experience authorities consider the condo\u2019s own balance sheet to be of no consequence. \u00a0<\/strong> Provided that the condo has accurately recorded all deposits and invoices accurately recorded.<\/p>\n

My own condo uses \u00a0accrual accounting<\/a>. \u00a0This means if a condo invoices a condo owner a 20,000 baht maintenance fee this 20,000 is counted as income. \u00a0 Even if the condo owner\u2019s deposit at the office is never made at the bank.<\/p>\n

The balance sheet never shows the 20,000 baht deposit. \u00a0Because the 20,000 baht never made it to the bank.<\/p>\n

But this 20,000 baht appears in the condo profit and loss statement. Because it is assumed that the condo owner will pay.<\/p>\n

But suppose the condo manager or office girl steals the 20,000 baht and then records it as \u00a0paid?<\/h3>\n

She then gives the condo owner a receipt. He\u2019s satisfied now that he\u2019s been given a receipt for paying his bill.<\/p>\n

So accounting wise what happens to this 20,000 payment? \u00a0It belongs into an account that is called Undeposited funds<\/a>. \u00a0On the condo books the condo office has collected it from the condo owner. So one might think that it now resides in the condo safe to be later deposited at the bank.<\/p>\n

The reality is that oftentimes the \u00a0office girl or manager uses \u00a0such undeposited funds for a month, or even for a much longer period of time.<\/p>\n

I have personally examined our condo’s books which showed 441,000 in undeposited funds.<\/p>\n

No one knew where the undeposited money went. But it sure didn\u2019t land in the condo\u2019s bank account. As for the professional audit, I doubt if the auditor even \u00a0looked our condo\u2019s balance sheet because the audited balance sheet showed exactly 441,000 baht less what it actually was.<\/p>\n

Lesson to be learned here is that the Thai auditor\u2019s ignoring our undeposited funds and our own internal balance sheets \u00a0was an open invitation to theft.<\/p>\n

Lesson 3<\/strong>. Get a good accounting software program like Quickbooks and use it.<\/h3>\n

Especially Quickbooks<\/a>. It might be difficult to buy a fully licensed copy of the software here in Thailand. \u00a0This is because foreign credit cards are usually not accepted by Intuit, the company that offers Quickbooks.<\/p>\n

I bought a licensed copy of Quickbooks for my own condo using my U.S. credit card. \u00a0Then our condo office reimbursed me.<\/p>\n

And…Quickbooks is in English so it might be difficult for your office personnel to learn how to use it.<\/p>\n

The solution is if your office personnel deal with Quickbooks in English to fire them and hire people who can<\/h3>\n

Lesson 4<\/strong>. Make sure that at least one member of your condo committee understands how to use the software<\/h3>\n

and that he can teach your office personnel how to use it. Our manager and office girl have been highly successful at learning how to use the software which has paid for itself many times over.<\/p>\n

Lesson 5<\/strong>. The condo owners must be supportive of the committee and the manager<\/h3>\n

unless the committee members or manager is not doing their job properly. \u00a0Owners must realize that their condo community is not a Democracy. It is a Republic.<\/strong><\/span> \u00a0In which the condo owners elect those owners they want to serve on the committee. \u00a0 Then they must let their duly elected committee do its job. If it is not doing its job properly it can then elect a new committee at the next general election.<\/p>\n

My study of History tells me that true Democracy came to us from Athens in Greece over 2,000 years ago. \u00a0Ultimately it did not work after a couple thousand citizens all started interrupting each other. \u00a0All of them shouting and carrying on until pandemonium reigned.<\/p>\n

Recently I learned from a condo owner that his condo community has gone through five committees due to condo owners thinking they were more important than committee members.<\/h3>\n

Selfish owners owners threatened lawsuits against committee members. \u00a0 And the girlfriend of an arrogant owner even beat up a well qualified manager. \u00a0While the owner backed his girlfriend. \u00a0Because he felt his girlfriend was the condo queen bee.<\/p>\n

Lesson 6<\/strong>\u2013Condo Committee members need to pay attention. \u00a0Most of the time they don’t.<\/h3>\n

They need to actually work at doing a good job. \u00a0This means checking the accounting of the condo\u2019s finances, and getting to know their fellow condo owners. They should know who pays his bills on time and who isn\u2019t. \u00a0And if whether or not the condo office has credited those who do \u00a0in the condo\u2019s accounting system.<\/p>\n

Lesson 7<\/strong>\u2013Here in Pattaya it oftentimes pays to be an embezzler.<\/h3>\n

When is the last time you ever heard of a Pattaya condo manager or office girl who has stolen a condo\u2019s money actually having to do jail time for her crime?<\/strong><\/p>\n

Probably never. \u00a0For one thing once an embezzler runs off with the condo owners\u2019 money she\u2019s likely to disappear to Bangkok. \u00a0Or to Rural Such a Toni. \u00a0Her family and fellow Thais are likely to cover for her since embezzlement is not typically viewed as a serious crime here. \u00a0And if anyone does not believe me consider this<\/p>\n

A. Even if the office manager is caught stealing, and she is apprehended by the police. \u00a0And she does serious jail time after being convicted of a crime. \u00a0And one of the condo owners publicizes she is a thief, \u00a0she can sue him.<\/p>\n

She’s going to win for defamation. \u00a0This is due to her losing face even though she\u2019s a criminal by Western standards.<\/h3>\n

B. The police will usually not arrest her anyway. Instead they will offer her the chance to pay back what she has stolen. \u00a0 But she will then say that she will try. \u00a0 \u00a0In the end the condo owners will not be able to force her to pay.<\/p>\n

C. The high cost of litigation. \u00a0Recently a reliable Pattaya law firm told me that our condo wound have to pay it 160,000 baht just to start criminal court action against an embezzler.<\/p>\n

But it would take at least one year for the court to start proceedings. And that there would be little chance for success most of the witnesses would \u00a0be unavailable due to their having to be back in their home countries, etc.<\/p>\n

In our own condo I’ve found most owners to be totally selfish. \u00a0They expect committee members and managers to do everything for them. \u00a0But they’d never go out of their way to be witnesses in such a lawsuit.<\/h3>\n

The same law firm told me that it would cost 120,000 baht just to start a Civil Court case against the embezzler.<\/p>\n

In a nutshell here in Pattaya you get to steal and collect the rewards of your theft but you don\u2019t have to suffer any of the consequences.<\/h3>\n

You can even get an office job similar to the one you have just left because so many Thai companies never ask for references or inquire of a prospective employee, \u201cWhat have you been doing with the last few years of your life?\u201d \u00a0Employers are fearful of saying anything negative about their past employees. \u00a0 Because they rightfully fear defamation lawsuits.<\/p>\n

Here it\u2019s all smoke and mirrors. It\u2019s the land of make believe and a real Disneyland for adults. Nevertheless it is possible to get good employees. \u00a0But this is highly unlikely unless you pay very close attention to the fact that this isn\u2019t the West. \u00a0And that \u00a0most Thais do not value Western values .<\/p>\n

Pattaya condominiums cheat their owners part II<\/p>\n

\"\"<\/a>
To go onto part 2 click here for What a $400 oil change tells you about condo repair ripoffs<\/a><\/strong><\/figcaption><\/figure>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

SI have heard from those in the know that up to 99 percent of Pattaya condominiums cheat their owners. Personally I don\u2019t think the figure is quite that high, but I do know many condominiums in my area have successfully ripped off their owners by embezzlement, by charging outrageous amounts of repairs or both. I … Continue reading How most Pattaya condominiums cheat their owners Part 1<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[473],"tags":[],"class_list":["post-1277","post","type-post","status-publish","format-standard","hentry","category-condo-management"],"yoast_head":"\nHow most Pattaya condominiums cheat their owners Part 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