Raus: E-Lelong can prevent price manipulation

raus-elelongKUANTAN: The e-Lelong system for public auction of immovable properties in the High Court allows bidders to bid without pressure and can prevent price manipulation.

Chief Justice Md Raus Sharif said that according to the e-Lelong system, the bidder’s identity would be kept confidential, encouraging more bidders to participate in the public auction.

The system is the first in Malaysia to conduct public auctions online in real time. It will also increase the public’s chances of owning fixed assets, especially residential properties at real value without price manipulation.

“The system will also enhance transparency and integrity of the public auction process and ensure there is no leakage of information.”

Raus said this at a press conference after launching the e-Lelong pilot project at the Kuantan Court Complex here today.

According to Raus, bidders registered with e-Lelong could make bids anywhere, as long as they had Internet access, including smartphones, which would save money and time.

“I realise there are parties concerned about the ability and security of the e-Lelong system to handle public auctions online and to ensure the process runs smoothly without disturbance and is free of cyber crime activities.

“I would like to emphasise that e-Lelong was developed taking into account information technology security issues and based on guidelines from the Malaysian Administrative Modernisation and Management Planning Unit (MAMPU),” he said.

Raus said the proposal to create the system was tabled on March 17 by Minister in the Prime Minister’s Department Azalina Othman Said to the cabinet, which then agreed to implement it in stages.

The system is currently in the pilot project stage and was launched on June 1 at the e-Lelong Operations Centre at the Kuantan Court Complex. The first bidding process is scheduled to take place on Aug 11.

“We’ll get feedback from the parties involved, including bidders, whether they are satisfied, and whether the system is transparent and there is no interference. The report will be submitted to the cabinet in September.

“If there are no issues, the e-Lelong system will be extended to 14 High Court locations throughout Peninsular Malaysia where the public auction process is conducted manually now,” Raus said.

He said the system would allow financial institutions to file a notice of the application online while court officials would generate a Proclamation of Sale online and submit it to financial institutions via email.

These financial institutions would no longer need to worry about the likelihood of losing original documents of ownership titles and mortgage copies, he added.