MONEYLENDERS (AMENDMENT) BILL

Order for Second Reading read.

5.51 p.m.

The Minister for Law and National Development (Mr E. W. Barker): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Hon. Members will recall that consequent to an Oral Question raised in this House at its sitting on the 20th December last year by the Member for Bras Basah on the Moneylenders Ordinance, 1959. 1 stated that consideration would be given to amend the Ordinance. The Bill before the House accordingly gives effect to Government's intentions in this regard,

In the past, exemptions have been granted under section 2 of the Moneylenders Ordinance, 1959, far too freely to any body corporate or society which applied to be exempted from the provisions of the Ordinance. This practice has been found to be undesirable and will be discontinued. Clauses 2 and 9 accordingly empower the Minister to impose conditions when granting exemptions in future and initially restrict the period of exemption for a period of three years. Any body corporate which has been exempted up to the time that this legislation comes into force will continue to be so exempted until the end of this year. Thereupon it follows that such bodies corporate will have to apply for future exemptions to the Minister.

Many borrowers complain that they receive from their moneylenders smaller sums of money than the amounts they were made to sign for on the promissory notes. Subsection (2) of section 16 of the Ordinance, which attempts to remedy the situation by requiring the moneylender to issue a crossed cheque, a crossed postal order, or a crossed money order niade payable to the borrower if the loan is $100 or above, has been found to be inadequate, as moneylenders can with a little ingenuity evade the provisions of the subsection.

Clause 5 proposes to remedy the situation by requiring moneylenders to make a loan of $100 or above in the form of a crossed cheque with the words "Licensed Moneylender" endorsed thereon. Any moneylender or his agent shall not present to any bank account any crossed cheque drawn by another moneylender or his agent and made payable to a borrower - sub-clause (3) . By sub-clause (4) a person who is not a moneylender shall not present to any bank more than two of such crossed cheques in any one month. A bank manager may be required to furnish information to the Public Prosecutor to facilitate the identification of any person suspected of having committed an offence under this clause, having an account with his bank - subclause (5).

Clause 6 requires a moneylender to afford the Registrar access to the cheques issued by him which have been cleared and to any note or memorandum setting out a contract in which the moneylender is or has been concerned.

Clause 7 is an important provision, for it requires moneylenders to endorse on their promissory notes the amounts of money they receive from their borrowers immediately after receiving such repayments. A penalty is provided for con travention of this provision. This clause seeks to remedy the usual complaint that moneylenders do not give receipts for or make any records of the sums they receive from their borrowers on account of principal or interest. And it further provides that if a moneylender has been convicted of such an offence, he will be unable to enforce the contract for the recovery of any monies due to him from the borrower.

Finally, by sub-clause (6) , the court is empowered to endorse details of such conviction on the note or memorandum. This should effectively prevent the moneylender from suing in more than one court on the note or memorandum.

Clause 8 is also an important amendment, for it proposes to make it a seizable offence for a moneylender to watch or beset the residence or place of business or employment of a debtor with a view to harassing or intimidating him.

The enactment of this amending Bill should not give rise to any objection from honest moneylenders. It is, however, designed to deter dishonest moneylenders from continuing the harmful and unfair practices that have come to the attention of Government.

Sir, I beg to move.

Question proposed.

Mr Lim Soo Peng (Havelock): Mr Speaker, Sir, the Moneylenders (Amendment) Bill is designed on the basis of experience derived from the operation of the Moneylenders Ordinance of 1959 to tighten up provisions and to make it more difficult for moneylenders to evade those provisions. Any Bill so designed must receive support from all except the dishonest moneylenders who are regarded by many as the unavoidable parasites of society.

I particularly welcome the proposal to make it a seizable offence for a moneylender to harass his debtors at home or at the office. All too frequently we see on pay day the furtive departure and sneaky homecoming of poor victims in the clutches of the moneylenders. Many of these poor souls fell prey to the moneylenders through no fault of their own, as they had sometimes to borrow money because of family sickness and other misfortunes. These unfortunate people must be protected from the excessive demands and harassment by moneylenders.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Mr Barker].

Bill considered in Committee.

[Mr Speaker in the Chair]

6.02 p.m.

Clauses 1 to 4 inclusive ordered to stand part of the Bill.

Clause 5 -

Mr Barker: Mr Speaker, Sir, I beg to move,

In page 2, after line 5, to insert -

"(a) by deleting the expression "(4) " appearing in the last line of the second proviso to subsection (1) thereof and substituting therefor the expression "(7)";".

There are consequential amendments to re-letter paragraphs (a) , (b) and (c) as (b) , (c) and (d) respectively.

Sir, these are all, in fact, consequential amendments which were overlooked earlier and are now necessary.

Amendment agreed to.

The Chairman: Consequential amendments to re-letter paragraphs ku), (h) and (c) as (b) , (c) and (d) respectively will be made.

Clause 5, as amended, ordered to stand part of the Bill.

Clauses 6 to 9 inclusive ordered to stand part of the Bill.

New Clause A - " Subsection (5) of section 23 Amendment of of the Ordinance is hereby amended section 23. by deleting the expression "(e)" appearing in the second line thereof and substituting therefor the expression "(d)".". - [Mr Barker].

Brought up, and read the First time.

Mr Barker: Mr Speaker, Sir, I beg to move, "That the clause be read a Second time."

Sir, this new clause seeks to make a consequential amendment which was overlooked earlier. It is intended that it be inserted after clause 7. Consequential amendments to the numbers of the subsequent clauses will have to be made.

Question put, and agreed to.

Clause read a Second time and added to the Bill.

The Chairman: This new clause is to be inserted immediately after clause 7. Subsequent clauses are to be renumbered consequent on the addition of the new clause.

New Clause B - " Amendment of Paragraph (b) of section 35 section 35. of the Ordinance is hereby amended by deleting the words "for the grant of licences" appearing therein and substituting therefor the words "under this Ordinance".". - [Mr Barker].

Brought up, and read the First time.

Mr Barker: Mr Speaker, Sir, I beg to move, "That the clause be read a Second time."

This new clause is necessary so as to widen the Minister's powers to prescribe fees which are at present limited to prescribing fees for the grant of licences. It is considered that fees should be payable for the grant of exemptions as well, and this clause will enable such fees to be prescribed. It is intended that this clause be inserted after clause 9.

Question put, and agreed to.

Clause read a Second time and added to the Bill.

The Chairman: This new clause is to be inserted immediately after the present clause 9, that is, at the end of the Bill.

Bill reported with amendments; read a Third time and passed.