LOAN SHARKING ACTIVITIES AND HARASSMENT

LOAN SHARKING ACTIVITIES AND HARASSMENT: 3.

Mr Wee Siew Kim asked the Deputy Prime Minister and Minister for Home Affairs if he will update the House on the

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activities of loan sharks, including (i) the number of police reports on harassment by loan sharks made by family members, neighbours and wrongly identified neighbours of debtors in the last 12 months; (ii) the trend of loan sharking and harassment activities over the last three years; (iii) the enforcement measures taken by the police in curbing illegal lending activities and harassment; (iv) the current procedures, deterrent measures and penalties for these criminals; and (v) the success rate of the police over the last three years and the expectations of the police force on future trends in this area of crime.

The Senior Minister of State for Home Affairs (Assoc. Prof. Ho Peng Kee) (for the Minister for Home Affairs): Mr Speaker, Sir, in 2006, there were 10,221 reported cases of unlicensed moneylending (UML) harassment activities. This is an increase of 19%, compared with the corresponding period in 2005 when there were 8,568 reported cases. Similarly, the 2005 figures represent a 47% increase over 2004, which had 5,809 reported cases.

Sir, UML syndicates of today are becoming more elusive in their operations. In their bid to avoid detection and arrest by the authorities, they use technology and capitalise on electronic banking facilities to achieve "virtual" transactions, not only with their borrowers and debtors but also between syndicate members. By making use of the bank accounts and telephone numbers of desperate debtors, they are able to conceal their own identities.

Taking cognisance of this trend, Police has committed significant manpower for intelligence gathering, investigation and enforcement against these UML operators. At the same time, Police adopts a holistic approach in combating the UML situation in Singapore. Let me provide an overview of the measures we have adopted as part of a comprehensive plan to combat UML activities in Singapore.

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Enhancing penalties in the Moneylenders Act

First, Members will recall that we enhanced the penalties under the Moneylenders Act. The penalties set out in the Moneylenders Act were enhanced effective from 1st January last year, to double the fines and imprisonment terms for first-time offenders of unlicensed moneylending. For repeat offenders, imprisonment was made mandatory.

In harassment cases, caning was introduced for offenders who commit damage to property during the course of harassment. Repeat offenders of harassment were made subject to mandatory caning when hurt to person or damage to property is caused.

Confiscation of assets of UML syndicates

Second, confiscation of assets of UML syndicates. Two offences under the Moneylenders Act have been gazetted as predicate offences under Schedule 2 of the Corruption, Drugs Trafficking & Other Serious Crimes (Confiscation of Benefits) Act, or CDSA Act in short, on 9th September 2005.

In this way, unlicensed moneylenders who have been charged and convicted in court for these offences, may have their assets seized and confiscated. The prospect of seizure and confiscation of the assets of illegal moneylenders and their syndicate leaders would make UML more unprofitable and unattractive.

Use of CL(TP) Act against syndicate members

Third, Police has invoked the Criminal Law (Temporary Provisions) Act to deal with the members of these syndicated UML operations, whenever necessary.

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Formation of the Anti-UML Task Force (AUML TF)

Fourth, at the enforcement front, Police formed a dedicated Anti-Unlicensed Moneylending Task Force (AUML Task Force) in the Criminal Investigations Department in July 2005 to take a more focused approach against unlicensed moneylending syndicates, instead of leaving it to individual Divisions to tackle the problem. Last year, a total of 168 ambush operations and nine intelligence-led operations were conducted against UML activities.

Apart from dealing with UML members, the Task Force is also on the look out for errant debtors who end up assisting or abetting UML activities. These acts of abetment include offering their bank accounts to UML operators, or registering for their prepaid SIM cards or other communication lines in their names for use by UML operators. Debtors who take loans from UML syndicates and subsequently sell their property to innocent victims without changing their addresses, can also be charged for offences under the National Registration Act.

Cancellation of the passports of known UML syndicate members

Next, let me touch on the passport cancellation policy against ex-UML syndicate leaders, which came into effect on 1st September 2005. By curbing their ability to travel overseas, ex-UML syndicate leaders are prevented from continuing to operate their UML businesses from abroad after their release from prison.

As at December last year, 28 passports have been cancelled. These ex-syndicate leaders would be subjected to a 10-year travel ban commencing from the date of their release from prison or, for

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those who have been fined only, the date of their conviction.

Installation of CCTVs to deter UML runners from harassing debtors

Then another initiative which we have taken is this collaboration between Police and the Town Councils to install more CCTVs for general crime prevention which also serve to deter and prevent UML harassment activities.

Collaborative efforts with other agencies

Lastly, as part of the comprehensive approach in dealing with this problem, Police has been engaging various external agencies, such as the Monetary Authority of Singapore (MAS), Association Banks of Singapore (ABS), local banks, SingPost, HDB and IRAS to tackle the UML situation from various fronts, by tightening up on procedures and policies to limit the opportunity for exploitation by UML syndicates.

Mr Wee also asks about the current procedures in dealing with these UML cases. Presently, upon receiving a report of harassment by unlicensed moneylenders, uniformed police officers will be deployed to perform on-scene investigation. Officers will take photographs of the scene, and record statements and particulars of the witnesses, victims and the alleged borrower, if they are present. Officers will also obtain important evidence, such as debtor's notes and contact numbers, and pass these onto the Anti-UML Task Force, which will carry out further in-depth investigation, gather intelligence and mount operations against UML syndicates.

As for the success rate in tackling illegal moneylending, let me assure the House that Police is keeping to a very high tempo in its anti-UML enforcement efforts. Due to the secretive nature of the current modus operandi of UML syndicates, extensive intelligence gathering

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and investigations are needed before we can arrest the perpetrators and bring down the syndicate. It therefore takes time for these efforts to bear fruit.

We have, however, managed to achieve some measure of success in dealing with UML syndicates. Last year, 2006, 294 persons were arrested for UML offences and harassment-related activities. This is an increase of 11% as compared to the year before in 2005. Also, last year, Police dealt with 39 UML syndicate members under the CL(TP) Act, which is an increase of 63% compared to 24 in 2005. And more importantly, in addition, Police smashed eight syndicates last year, compared to one the year before. And that is the nub because we have to tackle the syndicates so that we go to the source of the problem.

So Police will continue to closely monitor the unlawful moneylending situation, partnering the relevant agencies and members of the public to holistically combat the UML problem.

Mr Wee Siew Kim (Ang Mo Kio): Mr Speaker, Sir, I thank the Senior Minister of State for a very comprehensive reply. But I raise this question because I sense the frustration of some of my residents on the ground. Some of them are innocent to the whole affair because they are not actually party to the loan. It seems that the modus operandi of most of these loan sharks is to harass

the neighbours, cause damage to property, deface the environment and bring indirect pressure. The problem is that statistics show that the trend is actually deteriorating. We appreciate that a lot of effort has been made. But how fast on the ground can some of these cases be solved and the success highlighted so that people feel safer?

Assoc. Prof. Ho Peng Kee: Sir, the Member is absolutely right. This is a problem that affects all of us, something

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that is very heart-rending to those who are affected. But let me assure him and the House and Singaporeans at large that when we spotted the situation worsening two and a half years ago, we geared up. Formation of the task force was a signal that we sent as well as all the other measures that we have taken. So, on our part, the Police will definitely do what it takes working with the various agencies to tackle the problem.

On the ground, residents can also maybe help themselves if they could, for example, form Neighbourhood Watch Groups. This is something that I have encouraged my residents to do, because it is not easy when somebody comes and harasses us and we call the Police. By the time the Police comes, the person would have disappeared. So, if residents are mindful that this is happening in their block and are alert to what is happening and perhaps SMS networks can be formed and direct links established with the NPP. Although this will not solve the problem, it will at least represent an effort on the part of residents to work with the relevant agencies.

My call, therefore, is that, yes, as the illegal moneylenders have geared up, we will also gear up. When we tackle this problem resolutely, we shall overcome.