CHIT FUND COMPANIES (Winding up)

[Mr Speaker in the Chair]

Mr J.B. Jeyaretnam asked the Minister for Law whether he will make a statement on the affairs of the chit fund companies which were ordered to be wound up with particular reference to the affairs of the Gemini Chit Fund and say how much has been realised in the winding up to date and how much has been paid out to the contributors to the various funds.

The Minister for Law (Mr E.W. Barker): Mr Speaker, Sir, the Chit Funds Act came into operation on 14th January, 1972. Since then, a total of 26 chit fund companies have been ordered by the Court to be wound up mainly upon the application of the Minister for Finance. The Official Receiver was appointed liquidator of 22 companies, and the remaining four were administered by private liquidators. Subsequently, however, the liquidators of these four companies made applications to Court to transfer the liquidation to the Official Receiver.

The main assets of these companies are monies owing by subscribers who had successfully bid in the chit fund groups before the companies were wound up. The collection of these debts takes time; a debtor paying under a Court instalment order may take several years before he finally pays up the debt.

However, in order to assist the creditor-subscribers, interim dividends are declared as and when there are sufficient funds to do so. To-date the subscribers of nine chit fund companies have received a 100% dividend exceeding $2,375,000. Interim dividends totalling about $22,237,000 have been paid to the subscribers of the remaining 17 chit fund companies.

Particulars of these companies and other details are given in two Tables (Cols. 1223 - 1224) which are with the Clerk of the House, (marked Appendices I and II). Tables - INFORMATION ON CHIT FUND COMPANIES WHICH HAD PAID OUT 100% DIVIDEND (Cols. 1223 - 1224)

On the affairs of Gemini Chit Fund, the total realization to-date is $12,406,135. Two dividend payments totalling $9,769,018 have so far been declared to its 23,469 subscribers.