Mother of three fined RM50,000 for running tontine fund in first case since law was amended in 2011

BUTTERWORTH: In a first for the country since the relevant law was amended in 2011, a 38-year-old mother of three has been fined RM50,000 for running a kootu (tontine) fund which the prosecution said involved an element of profit.

Nor Jaimah Kamarudin, who operates a nasi lemak stall, was fined RM50,000 in default one year's jail for running the fund.

Nor Jaimah pleaded guilty to the charge under Section 3(1) of the Kootu Funds (Prohibition) Act 1971 before Sessions Court judge Norhayati Mohamad Yunus here on Monday (Feb 14).

Based on the charge sheet, Nor Jaimah was charged with organising a kootu fund for five individuals through social media from January to August 2018.

The amended charge carries a maximum charge of 10 years imprisonment or a RM500,000 fine, or both, upon conviction.

Nor Jaimah was charged in Kuantan in 2020 and the case was then transferred here.

Dr Shamsher Singh Thind, who represented Nor Jaimah, urged the court to take into consideration the fact that this was her first offence.

"She is a mother of three sons aged between four and eight and runs a nasi lemak stall.

"Although she pleaded guilty to the charge, she did not gain any profit from the kootu fund.

"She has saved the court time and resources by pleading guilty," he said.

He then urged the court to impose a reasonable fine as a jail term was not mandatory.

Malaysia Companies Commission (SSM) prosecuting officer Mohd Iqbal Mohd Yusoff said it carried out an investigation in September 2018 based on police reports made in Kuantan, which compiled oral testimonies and documents implicating Nor Jaimah.

"The facts showed that based on the evidence presented by the five, Nor Jaimah was responsible for organising the fund.

"Furthermore, the evidence from the participants also shows she used a personal bank account to receive and pay the proceeds (from the fund)," he said in court.

He urged the court to mete out a sentence based on public interest and safety.

"The court needs to protect the public's interest even if it is monetary.

"This is not a traditional kootu, (as it) offered profit.

"It economically impacted five women, who are housewives.

"The punishment needs to be in accordance with the offence so as to be a lesson to her and the public," he told the court.

Outside the courtroom, Mohd Iqbal said this was the first such case in the country since the Act was amended in 2011.

"There have been other cases that we investigated but those were not brought to court.

"The kootu money in this case ran to over RM100,000.

"We do not have an exact amount as only five people came forward and lodged police reports.

"To our knowledge, there are more people affected by this case," he said.

Nor Jaimah paid the fine.