Singaporean claims trial to accepting RM230mil in illegal deposits

KUALA LUMPUR: A 58-year-old Singaporean man who was just released from a prison in the Republic was brought to court here Thursday (Dec 21) over allegations of accepting illegal deposits said to amount to RM230mil.

Sunshine Empire Sdn Bhd founder Phang Wah pleaded not guilty to two counts of accepting deposits without a valid licence under Section 6 (4) of the Banking and Financial Institutions Act.

Phang, at the time of the commission of the offence, was assisting in the management of Sunshine Empire, an investment company based here.

The first charge was allegedly committed at Menara Uncang Emas in Jalan Loke Yew between July 14 and Oct 17, 2006, while the second charge is said to have been committed at Bangunan KUB.com, Jalan Yap Kwan Seng between Oct 18, 2006 and April 4, 2008.

Phang was charged under Section 25 (1) of the Banking and Financial Institutions Act 1989 (Act 372) which carries a maximum 10 years' imprisonment or a maximum fine of RM10mil or both, upon conviction.

Bank Negara prosecuting officer Alvin Ong asked the Sessions Court to fix bail at RM1.5mil for each of the charges.

"In this case, it will be proven that the deposits collected were around RM230mil," he told the court Thursday.

Shah Rizal Abdul Manan, who represented Phang, asked the court to impose a lower bail.

"At present, the family can only come up with between RM100,000 and RM130,000.

"If the bail is too high, it would defeat the purpose of bail in the first place," he said.

Sessions Court judge Hasbullah Adam then fixed RM1mil bail for each count.

The court also ordered for the accused to provide two Malaysians residing in Kuala Lumpur or Selangor to be bailors.

The case is set for mention on Jan 26 next year.