KUALA LUMPUR: A desperate bid to pay his workers has left a contractor trapped in a nightmare of debt and threats, after borrowing nearly RM400,000 from more than 20 loan sharks, only to end up over RM600,000 poorer and still being blackmailed.
MCA Public Services and Complaints Department head Datuk Seri Michael Chong said the 44-year-old contractor, known only as Chia, turned to illegal lenders after the main contractor for his project delayed payments, leaving him scrambling to cover salaries.
Despite taking loans totalling almost RM400,000, Chia received only about RM200,000 in hand.
“He has already paid RM662,000, but the loan sharks are still demanding another RM300,000.
“They are threatening to destroy his business if he doesn’t pay,” Chong said at a press conference at Wisma MCA here yesterday.
He said a police report was lodged yesterday and the case is being investigated under Sections 383 and 384 of the Penal Code for extortion, as well as Section 506 for criminal intimidation.
“This is not a typical loan shark case. Under Section 384, the offender can face more than 10 years in jail,” Chong said.
In a separate case, 38-year-old Chew Lai Wah publicly announced at the same press conference that she is severing ties with her sister, who had accumulated S$50,000 (RM155,417) in debts with Singaporean loan sharks.
According to Chong, Chew had already paid RM78,000 to settle her sister’s debts.
“She borrowed another S$50,000 and disappeared. The loan sharks came and splashed paint on the sister’s house.
“She wants to cut ties. Stop contacting her for the debt,” he said.
Chong added that loan sharks have recently switched tactics, using green paint instead of their usual red to mark victims’ homes, claiming red paint has run out due to the surge in harassment cases.
He revealed that his department received 31 loan shark complaints involving more than RM2mil in January alone.
According to Chong, loan sharks are increasingly using psychological warfare to pressure victims.
“They post photos of victims and their families online to shame them, which leads to job losses and even their children being bullied at school.
“They are using stress as a weapon to extort money. If you see such photos online, please have sympathy because these people are victims,” he said.
Chong also warned the public never to turn to loan sharks in desperation, saying recovery of funds is virtually impossible.
“In all 130 cases we handled last year, we did not recover money in a single case. So please, don’t borrow from loan sharks,” he said.
