Check authenticity of money lending firms: PBS
Saturday, 8 October 2005 (Source: Daily Express)

KOTA KINABALU: Parti Bersatu Sabah (PBS) urged the authorities to conduct checks on the authenticity of money lending companies in Sabah, some of which are charging their customers, comprising mostly civil servants, high interest.

Supreme Council member, Johnny Mositun said the proliferation of so many of these companies raised doubts on their legitimacy.

"We can see the signboards of these companies offering quick approval for loans up to RM50,000 especially to government servants.

"But are they really complying with the law because we know that the law is very strict on such companies, if I'm not mistaken among others they must have at least RM500,000 as capital before they can operate," he said in a statement.

Mositun who is also PBS Pantai Manis division chief said the party fully supports Chief Minister Datuk Seri Musa Aman's call on civil servants to stay away from Ah Longs or moneylenders since many in the lower income group had been trapped in heavy debts affecting their work performance.

"I have several friends who look depressed especially during pay day. When I asked they told me their whole salary is gone. Though I don't dare to ask more I presume they must be paying a hefty price for borrowing from these money lending companies," he said.

He also urged the authorities to look into goldsmiths in the State that offer "cash for gold", which he claimed enticed many government servants to use their salary slip as gold to obtain money with high repayment interest charge. "They are actually sucking money out of civil servants desperate for cash," he said.

In this respect, he welcomed Musa's advice to obtain loans from reliable and stable government agencies such as Sabah Credit Corporation (SCC).

However, PBS hoped that the Government would set up more agencies to cater to more civil servants to prevent them from going to money lending companies and goldsmith or Ah Longs.

On the drug abuse menace in Sabah, he said it was timely that the Government looked into resolving the problem among the locals while at the same time focussing on foreigners, especially those staying in squatters.

"In peninsula, the authorities are focussing on curbing drug addiction among the Malays. So it is timely that in Sabah attention is given to the bumiputeras since based on reports many of our local youths are already embroiled in the scourge," he said.