Kota Kinabalu: Gerakan Kuasa Rakyat Malaysia (G57) has questioned the legal basis used by the City Hall (DBKK) Mayor to forfeit and auction towed vehicles after 30 days, cautioning that it risks infringing upon the legal ownership rights of financial institutions.
G57 chairman Datuk Zulkarnain Mahdar said most of the towed vehicles facing auction are still tied to monthly bank instalments, meaning that under the Hire Purchase Act 1967, ownership rights remain with financial institutions until financing is fully settled.
He questioned which municipal ordinance or by-law empowers the Mayor to set aside banking rights within 30 days, warning that this could trigger serious legal disputes with banks and place public auction buyers at risk should vehicle ownership transfers be blocked.
Zulkarnain urged DBKK to suspend its 30-day forfeiture and auction procedures for a legal review with banks, while calling for direct towing to be replaced with wheel clamping and for the introduction of flexible compound instalment plans.
He added that the local authority should focus instead on providing more parking spaces and resolving municipal issues such as waste management, clogged drains, street lighting maintenance, and unlicensed traders, rather than enforcing punitive measures that burden ordinary working families.