BANK Negara’s public relations fiasco over interest payments after the six-month moratorium on loans could have been avoided if there had been greater accountability, such as by holding Parliament sittings and allowing the media to question policies, said a Pakatan Harapan lawmaker.

Bangi MP Ong Kian Ming said there had been “very poor and inconsistent public comms” on the loan instalments after the moratorium.

Taking to Twitter, the DAP lawmaker aid when the policy was first announced in late March, it was stated that there would be no increase in instalments after the deferment period.

He also highlighted a March 28 interview on Astro Awani with Finance Minister Tengku Zafrul Tengku Abdul Aziz about the Prihatin economic stimulus package, in which it was concluded that banks would not accrue and compound interest payments.

Ong said Bank Negara revised its first set of frequently asked questions (FAQ) with a new version on April 21, saying interest would be compounded and accrued unless waived by individual banks.

“What this means is that for those who automatically opt out of their (hire purchase) loan repayments will see an increase in their monthly repayments at the end of the six-month moratorium i.e. in October 2020.

“This episode highlights the importance of public accountability on the government’s response to the Covid-19 crisis. 

“Having media access to ministers and a robust debate in Parliament would raise relevant questions on many policy matters,” he tweeted.

To date, Perikatan Nasional ministers handling different aspects of the Covid-19 crisis and movement control order have not held open press conferences in which all media are invited and allowed to pose questions.

Interviews or press conferences have been limited to official media or talk shows.

Currently, the only press conference open to all media is the health director-general’s daily briefing on Covid-19.

Ong said this was one of the reasons why Pakatan Harapan is demanding a longer Parliament sitting.

“(We need) further clarity from (the prime minister) and his Cabinet, most of whom have not given open press conferences since the new Cabinet was formed.

Tengku Zafrul also said the central bank should have communicated the moratorium issue better to avoid confusion.

“There is a misunderstanding in the FAQs posted by Bank Negara. Also, the illustrations provided are confusing.

“But, there is no difference in the provisions,” he was reported as saying in Bangi this morning.

“Regardless, the customer will have to pay the interest later on; there is no case of there not being any interest.”

Bank Negara also issued FAQs this morning on how hire purchase and fixed-rate Islamic financing will be affected under the moratorium.

The central bank expressed regret for “any confusion and anxiety” caused, saying that misperceptions had arisen because of its earlier FAQs and an illustration that gave the impression that repayment amounts for hire purchase loans would not be changed.

The confusion began yesterday after the Association of Banks issued a statement that customers could choose to pay the accumulated six-month deferred instalments with their October 2020 instalments without being charged any additional interest, or continue the repayment of these instalments post-October through an extension of six months in repayment period after the original maturity date.

The second option means that interest based on the contractual rate will be charged on the amount of deferred instalments that are outstanding.

This followed Bank Negara’s announcement yesterday that all banks should communicate with customers about additional interest on their hire purchase and fixed-rate Islamic financing loans. – May 1, 2020.