LOANSHARKING ACTIVITIES

LOANSHARKING ACTIVITIES:

(Update since implementation of new measures): 10.

Mdm Halimah Yacob asked the Minister for Home Affairs (a) how effective are the new measures to curb the activities of loansharks; (b) whether the Ministry has observed any trends of loansharks resorting to more aggressive tactics to recover their loans; and (c) what more can be done to curb this nuisance.

11.

Mr Liang Eng Hwa asked the Minister for Home Affairs (a) if he will provide an update on the number of loanshark harassment cases in HDB towns; and (b) whether the enhanced measures that were introduced had been effective in reducing loanshark cases.

The Senior Minister of State for Home Affairs (Assoc. Prof. Ho Peng Kee): Sir, may I take Question Nos. 10 to 11 together?

Mr Speaker: Yes, please.

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Assoc. Prof. Ho Peng Kee: The number of harassment cases, after surging from 9,400 cases in 2007, to 11,400 cases in 2008 and to 17,900 cases last year, has stabilised. Over the period January to October this year, the number of cases dropped about 8.4%, to 13,848 cases compared to 15,120 cases over the same period last year. Meanwhile, arrest figures have stayed high as the Police press on with their ground efforts. Up to 31st October this year, the Police arrested 1,327 persons for harassment and loansharking offences, an increase of 66% compared to the same period last year.

Whilst the drop in the number of harassment cases is encouraging, we cannot declare victory. The improved situation can be attributed to several factors including the effect of enhanced measures introduced in the Moneylenders Act in January this year, stiff sentences meted out by the Courts, sustained enforcement against loanshark syndicates by the Police and the tremendous effort of community and grassroots organisations to deter and apprehend harassers on the ground.

Has there been a trend of loansharks resorting to more aggressive tactics? The main modes of harassment remain unchanged. These involve pasting or writing debtor notes on walls, splashing of paint on doors and mailing of hell notes. In some cases, gates were chained. Whilst there have been some cases where fire was used, there has been no trend that loansharks and their harassers are resorting to more aggressive tactics. Nevertheless, the Police have taken note of a recent case where a harasser purportedly set fire to a car parked at a carpark. Two persons have been arrested in relation to the offence and the Police will certainly press for deterrent sentences against them if found guilty.

On their part, our Courts have meted out stiffer penalties against offenders,

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when appropriate. Two recent cases illustrate this tougher approach. In the first case, a 24-year-old male offender was found guilty of carrying out a series of harassment by setting fire to the doors of his victims’ units. He was sentenced to 36 months imprisonment, 15 strokes of the cane and fined $30,000 in August. On appeal, the High Court increased his imprisonment term to 54 months last week. Before the amendments, his sentence would have been limited to a maximum fine not exceeding $40,000 or optional imprisonment not exceeding 36 months, or both. In the second case, a 22-year-old male offender used a hammer to cause damage to properties by smashing the glass window panels of the victims’ homes. He was sentenced to 60 months imprisonment and 10 strokes of the cane in April.

Sir, enhanced measures have not only been limited to prosecuting the harassers but have also been effectively wielded against those higher up the hierarchy. Up to 31st October this year, the Police smashed 12 syndicates and arrested 104 persons suspected of being involved in syndicated loansharking activities, an increase of 25% compared to the 82 persons arrested over the same period last year. Where syndicates are concerned, the Police will not only push for deterrent sentences but will also assess if the assets obtained from their ill-gotten gains warrant freezing or confiscation.

At the January sitting, a key concern shared by Members who spoke on the amendments was the involvement of youths. I warned youth offenders then that they could not hide behind their young age and would be subject to stiff punishment. The number of young offenders under the age of 16 arrested for loansharking and harassment activities dropped from 22 persons for the period January and October last year to 13 persons for the same period this year.

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With regard to Mdm Halimah's query as to what more can be done to fight this scourge, let me say that tough laws and enhanced police enforcement are only part of the solution. As, if not more important, is the active involvement of the community. In this regard, I am happy to note that many community and grassroots organisations have responded to the call to mount self-help initiatives to safeguard their neighbourhood and to work with the Police to counter this scourge. The many Community Safety and Security Programme (CSSP) Projects engage residents to be extra eyes and ears on the ground, report cases immediately when any suspicious activity is sighted within their neighbourhood and, in some instances, conduct local patrols. A key outcome is that a neighbourhood being harassed does not feel that it is helpless and at the mercy of the harassers. To date, close to 800 Neighbourhood Watch Groups (NWGs) have been formed island-wide, with some NWGs scoring notable successes against loansharks, resulting in arrests and a drop in harassment activities.

Moving forward, as I have said before in this House, we must all continue to press on resolutely in our fight against this scourge. These are organised crime syndicates that will adapt their operations to avoid Police detection and arrest. That is why even as we note some early successes, we will continue to monitor the need to strengthen our laws.

Mr Liang Eng Hwa (Holland-Bukit Timah): Sir, notwithstanding the Senior Minister of State indicating that numbers are stabilising, we still hear from the ground feedback and reports about loansharking causing a lot of distress, inconvenience and fear to our residents. Some residents have given feedback that they have got used to this kind of harassment which is a worrying sign. I would like to ask the Senior Minister of State whether we should set a more

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ambitious target in terms of reducing the number of cases of harassment and loansharking activities and perhaps commit a bigger budget and more resources to decisively deal with loansharking activities. Deal them a severe blow so that we can break the back of the racket and the network.

My second question: we discussed earlier about youth gangs and whether there are indications that many of these teens in the gangs are also involved in these loansharking activities. Are these groups breeding grounds for loanshark runners?

Assoc. Prof. Ho Peng Kee: Sir, the first point is that we must see the situation in context. As I mentioned just now, given that the surge from 2007 to 2009 has stabilised and come down means that we are doing something right. I would like to attribute it to all the stakeholders working together. Having said this, I also agree with Mr Liang that every case is one case too many. Definitely from the feedback on the ground, we feel for the residents when they get harassed. I receive many appeals from Members. When MPs write to me, I would ask the Police to see whether more can be done. It is not a matter of resources because the Police are, in fact, resolved to work with the grassroots to tackle this problem. The Police have, for example, bought more CCTVs and, where appropriate, they have also helped the residents, Town Councils and grassroots fix CCTVs.

On the question on youths – this is something we are monitoring all the time. Like I have said, the figures have shown that for youths under 16, the number of youths involved in loansharking and harassments has come down. There is no trend as such but this is something we are always mindful of. As I have said, we have strengthened the law, so a person over 21 years who instigate or get a youth under 16 years to get involved in

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loansharking can now be sentenced up to nine years. Sir, the message is very clear and I would urge everybody to continue to press on.

Mdm Halimah Yacob: Two supplementary questions for Senior Minister of State. First, what can we do for those who borrow money from loansharks and then refuse to change their addresses and allow buyers of their flats to be harassed by the loansharks? This is a serious problem and it has not abated as a result of the new measures.

Secondly, although the Senior Minister of State said there is a decline in loanshark activities, 13,000-odd is still a large number of cases. Is there any indication that there is a linkage to the casinos, ie, people are now borrowing more money and, therefore, end up with a lot of loanshark problems?

Mr Speaker: You have three minutes, Assoc. Prof. Ho.

Assoc. Prof. Ho Peng Kee: Sir, on the links with the casinos, the Police tell me that, as of now, there is no linkage. Of course, they are monitoring and it could be early days yet. From the number of harassment loanshark cases, there is no spike. If there is spike, then we will have to study it further. This is something we are always very mindful of – that the casinos should not lead to an increase in crime. This is why the Police have beefed up its resources in that area.

On the other point about the change of address: I agree with Mdm Halimah. Indeed, this is something that we should be more serious about. In fact, under the National Registration Act, a person can be fined up to $5,000 or jailed up to five years if one does not change his address within 28 days. I have told the Police that if a borrower has moved and did not

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change his address to avoid detection, then we should press for a deterent sentence against him. Having said this, even if he had changed his address, that may not necessarily mean that it will deter harassment. The loanshark cannot check the register in the NR Registry. But still, the fact that he has done something which has led to another person – an innocent buyer – being harassed is something we should all take odium against. In the last amendment, we amended the MLA to say that "if you borrow using a false address, you are specifically subject to punishment". So it is a specific offence now.

Mr Speaker: Last question.

Mr Sin Boon Ann: Many of these syndicates operate outside of Singapore. I would like to ask the Senior Minister of State whether we have taken further steps to deal with any syndicate that operates outside the reach of our laws. The second question is to ask the Minister whether he will now consider it appropriate to make it an offence to borrow and do business with loansharks as I think this will help dry up the source of demand for illegal loans.

Assoc. Prof. Ho Peng Kee: Sir, when we tabled the amendments in January, we said the Police would work very closely with its overseas counterparts to address this problem. Indeed, there are some syndicates that may operate from overseas. The last time we amended the Act, we put in extra-territorial jurisdiction. So, we have signalled our seriousness in this regard. The Police will continue to work with its counterparts.

The second issue is something more complex. I cannot answer it within 45 seconds. We have discussed it in this House before and the debate in this House showed there is a diversity of views. When we floated the balloon about three years ago, there was also a diversity

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of views from the ground. As I have said, we will monitor the situation. It is not something that we have discarded but with the improved situation, we need not go down that route. As many Members have mentioned, we also have people who are genuine borrowers. If we criminalise the act of borrowing, that may lead to other problems.

3.00 pm

Mr Speaker: Order. End of Question Time.

[ Pursuant to Standing Order No. 22 (3), Written Answers to Question Nos. 12-15, 18 and 22 on the Order Paper are reproduced in the Appendix*. Question Nos. 16-17 and 19-21 have been postponed to the next available sitting of Parliament. ]

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