HOUSING AGENTS ACTING AS LOAN SHARKS (Action against)

Mr Goh Choon Kang asked the Minister for Home Affairs what action will be taken against housing agents acting as loan sharks.

The Minister of State for Home Affairs (Assoc. Prof. Ho Peng Kee) (for the Minister for Home Affairs): Sir, I would like to assure the House that Police investigate such offences thoroughly when they are reported.

Housing agents who give such loans at interest will be investigated for carrying on business as a moneylender without a licence under the Moneylenders Act. Offenders are liable on conviction to a fine of not less than $10,000 and not more than $100,000, and for a second or subsequent offence to a fine of not less than $20,000 and not more than $200,000 or to imprisonment for a term not exceeding 12 months or to both. An offending company shall be liable to a fine of not less than $20,000 and not more than $200,000. We will come down hard on these exploitative offenders and will seek deterrent sentences where appropriate.

Housing agents involved in such practices will be reported to the Institute of Estate Agents, and the Inland Revenue Authority of Singapore which issues housing agent licences to housing agents' companies.

Home owners on their part should be prudent and exercise caution when approached by housing agents making such offers. They should not take any loan from illegal moneylenders. Those who do so do it at their own peril. House owners should report immediately to the police should any housing agent make such an offer to lend money. For Police to arrest such exploitative offenders, house owners must be prepared to cooperate and assist the Police in their investigations.

Mr Goh Choon Kang (Marine Parade): Sir, I would like to ask the Minister of State how many such cases have been detected or reported so far.

Assoc. Prof. Ho Peng Kee: Sir, the situation is not rampant. Between 1997 and 1999, three such cases were reported.