Syndicate choking traders up to RM28k for a bazaar spot

KUALA LUMPUR: Jalan Tuanku Abdul Rahman (TAR), which has been synonymous for its bazaar Ramadan and cut down prices for Hari Raya shopping, has been home to a huge money-making syndicate for years.
It is learnt that some individuals are making up to RM28,000 during the fasting month each year by leasing their bazaar Ramadan spots that they had successfully applied for from Kuala Lumpur City Hall (DBKL).
This is despite a recent revision by DBKL where only licensed pasar malam traders in the city centre are eligible for the draw.
Previously, anybody could qualify for a bazaar spot in Jalan TAR.
DBKL charges successful applicants RM1,500 for a typical bazaar spot, including licence fee and cleaning-up charges.
Most of the traders theSun spoke to admitted to paying over 10-fold the actual amount to the original owners of the spots or to middlemen (ulat).
According to one trader, who wished to only be known as Eriq, the increased popularity of Jalan TAR has seen more people applying for the spots, knowing they could lease it out for up to 20 times the amount they paid to DBKL for a site licence.
Eriq, who paid RM15,000 for a spot three years ago, explained that to avoid getting caught by the local council, the successful applicant would place the buyer's personal details and picture as stall assistants on the licence, which has to be displayed on the stalls.
"So when DBKL officers come to check, the stall assistants would simply say that they are just helping out the owner," he said, adding that many are forced to pay the hefty amount as they had purchased and prepared stocks to be sold at the bazaar.
Another trader, Dino, said only about 40% of traders in Jalan TAR are genuine traders who won the draw, adding that many chose not to complain to DBKL fearing for their businesses and relationship with the original owner.
He also explained that upon the completion of the lot draw, "agents" would approach the successful applicants to purchase the space, and lease it off to a third party at a higher price.
"I paid RM19,000 for this spot, and RM52,000 for three spots last year. This is my seventh year straight buying spots from someone else. Some others even paid upwards of RM25,000.
"I would also like to question how these middlemen were able to postpone the submission of details for stall licences to DBKL, despite long past the closing date. Is there an element of corruption?" he said.
Another trader, Ain, said the practice of leasing out the spots at higher prices was not fair for those who genuinely wanted to do business.
In an immediate response, DBKL Licensing and Petty Traders Development Department director Anwar Mohd Zain urged those with knowledge of the syndicate to report the matter to DBKL or the police for further action.
He said those guilty would have their licences revoked and their names blacklisted from trading at DBKL's bazaar Ramadan in the future.
"We only give away these spots to those who truly want to do business. Those with information, please come forward. But please also provide evidence.
"You can't say you are afraid to report because you do not want to suffer losses or face problems with the owner. This is serious, we will not compromise," he told theSun.