KUALA LUMPUR: A contractor who borrowed nearly RM400,000 from over 20 loan sharks to pay his workers' salaries has ended up over RM600,000 poorer after being blackmailed.
MCA Public Services and Complaints Department head Datuk Seri Michael Chong said the 44-year-old contractor, known as Chia, turned to illegal lenders after a main contractor delayed payments for a project.
Chong said that despite taking out loans totalling RM400,000, Chia only received about RM200,000.
“He has already paid RM662,000, but the loan sharks are now demanding another RM300,000. They have threatened to destroy his business unless he pays,” Chong said at a press conference on Friday (Jan 30).
The case has been reported to the police and is being investigated under the Penal Code for extortion and criminal intimidation.
In a separate matter, 38-year-old Chew Lai Wah announced she is disowning her sister who racked up SG$50,000 (approx. RM160,000) in debts with Singaporean loan sharks.
This comes after Chew had already settled a previous RM78,000 debt for her sister, who has since disappeared. Loan sharks have reportedly harassed Chew by splashing green paint on her home.
Chong remarked that red paint appears to be out of stock at shops due to the high volume of harassment cases, leading loan sharks to switch to green paint.
He revealed that his department received 31 complaints involving over RM2mil in January alone. He warned that loan sharks are increasingly using "psychological tactics," such as shaming victims and their families on social media.
Chong advised the public never to borrow from illegal lenders, noting that in all 130 cases he handled last year, the recovery rate for funds was 0%.
