THE STAR, Friday, December 20, 2002- Petaling Jaya : The Human Resources Ministry is going on a nationwide campaign to curtail the activities of loan sharks - it wants employers to offer small loans to their workers to tide them over during hard times.

Minister Datuk Dr Fong Chan Onn said the employers could help keep loan sharks away from their employees if they offered the workers small loans during emergencies.

The employers could then recover the money through monthly deductions from their salaries, he said.

"We are going on a nationwide campaign to encourage all employers, especially factories, plantations and large companies, to introduce this small loan scheme for emergencies like funerals, accidents and other pressing needs.

"This will keep loan sharks away from the country's workforce," he said in an interview.

Dr Fong said that already one company had succeeded in doing this - Westport Malaysia, which provided its port workers small loans to pay off their debts to illegal moneylenders.

Applauding Westport's move, he said it had displayed how a good and caring corporate citizen could help ease the burden of its employees.

Dr Fong urged employers, in particular big companies, to emulate Westport.

According to information gathered by various organizations and social groups helping loan sharks victims, many lower-income workers who took loans of RM500 to RM2,500 have been indebted to the illegal moneylenders for years.

Westport executive chairman Tan Sri G Gnanalingam, speaking on his company's experience, said that about 150 to 200 port workers who had been harassed by loans sharks were given small loans to pay off their debts and allowed to repay the company through monthly salary deductions.

"This stopped loan sharks from preying on the port workers, who earned between RM800 and RM900 per month," he said.

He cautioned that employers who did not try to help their workers get away from loan sharks were doing so at their own peril.

This was because employees who were desperate could resort to a lot of malpractices, including stealing and absconding, to escape the loan sharks, he said.

Several organizations have also urged the Government to impose harsher penalties on illegal moneylenders who have caused their victims untold misery.

The Pahang Association of Consumers (PAC) said there should be a concerted effort by government agencies to put loan sharks out of business.

PAC executive secretary Mohamad Saiful Abdullah said in a statement that Bank Negara and the Finance Ministry must pressure banks to provide small loans to those in the lower-income group, petty traders and hawkers.

Indian Chamber of Commerce and Industry, Selangor, secretary G. Gunaraj, who had also called on employers to offer small loans to those trapped by illegal moneylenders, welcomed the ministry's move.

"Since we started counseling sessions two weeks ago, hundreds of loan shark victims have called us for help," he said.

He said a second session would be held at the Golcourse Hotel in Klang between 10am and 2pm on Sunday.

Those who need further information can contact A G Thilagan at 012-334-4484 or ICCIS at 03-7955 2248.

The Federal Territory Wanita MCA said the recently proposed amendments to the Money Lenders Act 1951 should include a mandatory jail term of 10 years and five strokes of the cane on those found guilty of loansharking.

In strategic bureau deputy chairman Tai Sim Yew said there should also be a legal provision making it mandatory for victims of loan sharks to be charged with abetment.