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Loan sharks restrategise
by Tim Leonard
newsdesk@thesundaily.com
PETALING JAYA: When the
going gets tough, loan sharks
get going.
With the frequent clamp-
downs on illegal money-lend-
ing activities, loan sharks
in the Klang Valley are
restrategising their business
models.
theSun learnt that several
have “amalgamated” their
“financing” business with
housing renovation contrac-
tors to come up with a new
business concept – renovate
first, pay later.
These loan sharks and
contractors are fast making
inroads with their new con-
cept, and how they go about
making money is simple.
Loan shark runners are
positioned at newly completed
projects, especially apart-
ments and shop offices, to
wait for unit owners to arrive
to check on their properties.
Peak time for business is
normally after keys to the
properties are handed to the
owners once a certificate of
fitness is issued by the local
authority.
Property owners who
don’t have sufficient funds are
approached by sweet-talking
runners who offer them reno-
vation services.
Lack of funds is no reason
to worry, they are told – con-
tractors can go ahead and
start work first.
Owners can ask to have
their units painted, tiled and
installed with grilles, and
build kitchen cabinets – all
without paying a single sen
upfront.
The loan shark would
“make payment” to the con-
tractor and the owner would
pay monthly or weekly instal-
ments to the loan shark.
People who wish to have
their units renovated must
submit their credit cards,
bank books and ATM cards
to the loan shark.
In the event that an out-
side contractor comes into
the project site where a loan
shark runner is stationed,
there is a confrontation.
Often, outsiders will not
attempt to do business on the
runners’ turf in order to avoid
a clash.
And most property owners
refuse to lodge complaints
on such activities with the
authorities, fearing their
properties might be damaged
or that they might face other
forms of reprisal.
It is learnt that the menace
is widespread in southern
parts of Kuala Lumpur
such as Bandar Sri Petaling,
Desa Petaling, Salak Selatan
and other areas where new
projects are mushrooming.
The MCA Public Services
and Complaints Department,
which received over 600
cases relating to loan sharks
involving more than RM54
million last year, is con-
cerned about the growing
problem.
Its head Datuk Michael
Chong said property owners
who are harassed by loan
sharks offering easy payment
schemes for renovation work
must report their activities.
“These unscrupulous con-
tractors behave like gang-
sters, preventing others from
taking up jobs in their ‘area of
control’. Some even have the
audacity to put up tables in
newly completed project sites
in a bid to force owners and
tenants to use their renova-
tion services,” he said.
“I urge people who face
such problems to lodge police
reports. We are also willing
to help anyone facing such
problems by raising it with
the relevant authorities in-
cluding the developers.
“While the problem of
loan sharks teaming up
with renovation contractors
is something new, efforts
must be made by all parties
to ensure it doesn’t become
a bigger menace to society,”
Chong said.
| WEDNESDAY JANUARY 14 2009
Expiry dates for
motorcycle helmets
by Giam Say Khoon
newsdesk@thesundaily.com
ness and reduce road fatalities,” Ong
told reporters after launching a Da Ma
Cai Turf Clubs Chinese New Year charity
KUALA LUMPUR: The Transport programme yesterday.
Ministry is studying the feasibility of Asked if there was any government
making expiry dates for helmets man- effort to encourage motorcyclists to
datory. replace their old helmets, he said: “When
Minister Datuk Seri Ong Tee Keat said we embark on such initiatives, we need
(Seated) motorcyclists would be risking their lives a period of advocacy to convince road
Ti Ratana if they bought helmets that were more users of the need to embrace change
Welfare than five years old. for personal safety.
Society According to studies conducted by “Response from motorcyclists
teacher, the Malaysian Institute of Road Safety has been encouraging, but I want to
Sister Ling, Research, helmets more than five years emphasise that we do not just give
and Ong at old may not be safe for use as the qual- away helmets; we want motorcyclists to
the launch ity of materials used to make them may understand and appreciate that all
of the Da have deteriorated. efforts are for their safety, not something
Ma Cai “Most motorcyclists are not aware to burden them with.”
Turf Clubs that there is a shelf-life for helmets On the Chinese New Year charity pro-
Chinese New according to global standards. We also gramme, Ong said the government was
Year charity have ‘toy’ (fancy) helmets being sold pleased to see an increasing number of
programme. in the country ... such helmets do not corporate organisations with a focused
provide adequate protection. approach towards corporate social
“A decision on responsibility (CSR).
“In many developed nations, CSR is
deemed synonymous with the
nation-building process. As
such, I am happy to note that
in Malaysia, a similar belief is
being cultivated with more
corporations taking greater
care and responsibility
towards changing mindsets,
widening perspectives and
improving the quality of life
for everyone,” he said.
Selangor Turf Club chair-
man Tunku Shahabuddin
Burhanuddin said more than
14,000 individuals nationwide
would benefit from a fund of
more than RM1 million.
this will be made soon. We also need
the cooperation of the corporate sector
to donate helmets to help raise aware-