AN increase in bankruptcies among civil servants is anticipated following the recent enforcement actions by the Malaysian Anti-Corruption Commission (MACC) against a financial consultancy syndicate.
Datuk M. Bakri Abd Majid, the director-general of the Malaysian Department of Insolvency, indicated that civil servants who have taken out "unusual" bank loans are likely to default once the syndicate ceases to cover their payments.
"We don't have a clear picture of the total loan amounts or their ability to repay based on their salaries.
"However, if an individual has secured loans from four different banks at the same time, each for RM200,000, they could face bankruptcy.
"Before that occurs, the banks will take action, as I suspect these individuals will struggle to meet their payment obligations.
"Some may have already been declared bankrupt," he mentioned during an episode of Berita Harian's Borak Harini podcast.
Recently, MACC dismantled a corruption and money laundering scheme involving a financial consultancy firm and bank officials from various institutions through Operation Sky.
This operation, conducted by MACC's Anti-Money Laundering Prevention Division in partnership with Bank Negara Malaysia (BNM), resulted in the arrest of at least 27 individuals, including 18 bank officers, eight employees of the consultancy, and one civilian, to aid in the investigations.
The inquiry also included three celebrities who acted as brand ambassadors for the consultancy — singer Ziana Zain, actor Datuk Jalaluddin Hassan, and Malaysia's first astronaut, Datuk Dr Sheikh Muszaphar Shukor.
It was confirmed that they were compensated solely for their endorsement roles and had no involvement in the company's operations.
During the operation, MACC confiscated around 4,000 documents and froze 98 bank accounts holding over RM17 million.
Bakri acknowledged that there are cases where civil servants have been declared bankrupt due to excessive bank loans. - March 9, 2025
