How an entrepreneur fund was abused under BN rule

Diyana Ibrahim Diyana Ibrahim Updated 6 years ago · Published on 25 Aug 2019 11:00AM · 4 Comments

Entrepreneur Development Minister Redzuan Md Yusof says Tekun needs to be freed from political considerations to prevent the leakages that happened under Barisan Nasional’s rule. – The Malaysian Insight pic, August 25, 2019.

DECISIONS in Tekun Nasional, or the National Entrepreneurs Group Economic Fund, will no longer be made in favour of politics, Entrepreneur Development Minister Mohd Redzuan Md Yusof has pledged.

The fund’s role in providing micro-credit loans to Bumiputera entrepreneurs needs to be freed from political considerations to prevent the leakages that happened under Barisan Nasional’s rule, he said.

“If you look at the management structure of Tekun now, I have not appointed anyone from political parties. I want to distance Tekun from any political image. We want to be focused on seeing results.

“If we allow politics to get involved, we can’t progress,” he told The Malaysian Insight in a recent interview.

Redzuan announced the appointment of corporate figure Mohamad Suparadi Md Noor as Tekun chairman in October last year. Supardi was executive chairman of the DSN Group of Companies.

Tekun was established in 1998 to provide easy credit to Bumiputeras to start businesses.

However, the scheme was criticised for being used as a tool by the previous government to ensure political loyalty. Borrowers have complained about being made to obtain endorsements by Umno grassroots leaders before their loan applications could be approved.

Tekun’s previous executive director Abdul Rahim Hassan in 2013 had even famously claimed that the fund was meant to serve party members.

Describing the leakages, Redzuan said Tekun had been abused to the extent that Bumiputera were borrowing funds for non-business purposes – and the agency never batted an eyelid.

There were applicants who took up credit just to access the funds without doing any actual business.

“From our data, we have traced that some of this credit was used to buy motorcycles.

“We have to remind people that Tekun is meant to help serious entrepreneurs.”

There were also others who tried to profit off borrowers, posing as “facilitators” to help applicants.

“But instead of the RM10,000 applied for, the ‘facilitators’ creamed off a sum and the applicant would only get RM7,000 or RM8,000.

“Yet, applicants were required to repay the full amount.

“These ‘facilitators’ are the type of people we call ‘rent-seekers’ who try to make a quick buck. They are the reason corruption happens.

“In the end, the borrowers suffer and find it difficult to repay their loans.”

Redzuan believes that since Pakatan Harapan became the federal government, the agency has cleaned up and its performance improved.

It has collected RM200 million to date for this year, allowing the agency to plan and develop more programmes for entrepreneur development.

Since its inception, 417,000 borrowers have received credit from Tekun. Some RM2.07 billion has been repaid by borrowers since 2014 until last year. – August 25, 2019.

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Comments

  • Anything Malays do will FAIL Bcoz U muslims DONT GET RAHMAT FROM ALMIGHTY. U malays ALWAYS BULLY THE NON MALAYS USE OUR TAX PAID MONEY FOR MALAY PEOPLE WHEN ACTUALLY IT SHLD BE SHARED WITH THE NON MALAYS EQUALLY. What u think only malays need to eat is it Other human in malaysia want to eat shit is it. Muslims will Never Hail unless they DO JUSTICE TO ALL THE SAME. Very Simple Rule GOD IS VERY FAIR LOVING COMPASSIONATE . GOD did Not Hide SUN OR MOON from Any Human on Earth . ALL ARE ALMIGHTY CREATION. U malays Dont Try To Be Smarter than GOD or ALLAH.

    Posted 6 years ago by Mindy Singh · Reply

  • Borrow 10k but get 7-8k. Its typical ah long business. scUMNO really know how to skin the poor Melayu previously and yet these Melayu still think scUMNO as their saviour! Kena tipu and yet still bodoh!

    Posted 6 years ago by Chee yee ng · Reply

  • Wonderful. Lets hope this government sticks to this policy of removing politics from funding true businesses. The MACC should watch over this.

    Posted 6 years ago by BC Lim · Reply

  • I think most of our brothers r victims as well and those who r link with UMNO r actually the culprit. However, the practices must be stop at all cost and it's payback time for borrowers.

    Posted 6 years ago by Chong Choong Kian · Reply