Chief Minister Lim Guan Eng said the state also wanted to “send a message to the Ah Long” that they were not to lend money to state government employees anymore.
Lim said the state is working out ways to ensure that loan sharks only get back what they lent, adding they should not make a profit through the interest.
“We are not blaming anyone. Not the Ah Long nor the borrowers. The Ah Long will get back their money, but only the capital they lent,” said Lim. “Next time, don’t lend to civil servants.”
“The economy is tough now and we understand many don’t have enough to spend. We need to help those who have resorted to borrowing from loan sharks.”
Lim was speaking to reporters after attending the monthly assembly with civil servants this morning.
Earlier in his speech, he told civil servants to stay away from unhealthy activities, including borrowing money from Ah Long.
He advised those who had borrowed money to see their respective superiors, adding the state government would assist them.
“We want to put an end to state government employees borrowing money from Ah Long. We will take action, report to the police…you still must pay back the loan, but not the high interest rates.
“If you have problems, you come to us. We will make sure you only pay the amount you borrowed.
“This way, the Ah Long will also not want to lend civil servants money anymore” he said.
State secretary Farizan Darus said all state department heads had been directed to identify members of their staff, who were at risk of running into financial difficulties.
“The department heads are to meet each staff personally to find out how to assist civil servants with financial difficulties,” Farizan said.
He said staff with financial problems were those who only took home 40% of their salary. To make up, they resort to taking bribes or going to the Ah Long.