NST, January 28th, 2002 - KUALA LUMPUR, Sun. - Companies faced with high turnover of staff and incidence of pilfering should determine whether their employees are victims of loan sharks or are debt-ridden.

Westport executive chairman Tan Sri G. Gnanalingam, who faced a similar scenario with his staff in the past and had to devise a financial programme to help end the loan shark menace, said employees who were victims of loan sharks had a tendency to "job hop" besides pilfering to find means to supplement their incomes.

"If you find employees giving in demands and doing things for other people or indulging incorruption then that needs to be looked into seriously," he said in an interview.

He said employees committed these offences because they were driven up the wall with financial problems or got entangled in the web of loan sharks.

"The time has come for organizations or employers to identify the needs," and problems of employees," he said..

Gnanalingam said after Westport vas established, the company gave its 1500 employees all kind of benefits, but noticed that there were staff with personal problems.

"Our investigations showed the employees were having financial constraints. Some had family problems.they have to foot hefty hospital bills with aged parents hospitalised, while others lived in squatter houses constantly hit by floods and had to borrow money from loan sharks after banks and financial institutions turned them down."

These employees, he added, had no peace of mind and their job performance fell as they were burdened with having to pay high interest of between five and 30 per cent per month for loans taken from loan sharks.

After studying the trend, Gnanalingam said, the Westport United Fund scheme was established with , RM1 million in 1998, where employees were allowed to borrow not more than 40 per cent, of their salaries to settle their debts, In special cases they were allowed a loan of up to 50 per cent.Gnanalingam said minimal salary deduction was made for the no interest loans.

Even then the problem persisted with 157 employees having their bank books kept by loan sharks who would escort the employees to the bank and withdraw the interest every month.

This prompted him to establish theRM500 000 "loan shark fund".

Gnanalingam admitted that they did encounter defaulters among the staff.

"The rate is about five per cent and they probably left due to fear of loan sharks,' he said, adding that it did not deter him from implementing the fund.

Gnanalingam said his philosophy was that "we should not be dictated by the tyranny of the minority as the majority still stands to benefit.