A GROUP of 22 civil servants, including teachers and doctors, claim to have been defrauded of a total of RM19.9 million by a purported financial consultancy firm offering credit-cleansing and investment services targeted specifically at public sector employees.
The victims allege the company promised to restructure and improve their financial standing through bank loans, on the condition that the funds be handed over for investment and monthly instalment management.
However, after taking out multiple loans, many found themselves burdened with undisclosed deductions — including hidden service fees ranging from 30 to 40 per cent — and investment returns that never materialised.
One victim, who wished to be identified only as Ain, said she was persuaded to take loans from four separate banks in June last year, and now faces over RM1.2 million in personal losses.
"Every day the banks are after me — they've even come to my workplace. I truly believe I won’t be able to repay these debts in my lifetime," she said at a press conference hosted by the International Humanitarian Organisation (MHO) in Kuala Lumpur today.
"I can’t accept that this could be allowed to happen without a full investigation by the authorities."
Another victim, Akmal, 36, said he joined the so-called financial programme in 2021, which initially involved monthly financial management workshops.
"The sessions seemed credible and instilled trust. Eventually, we were asked to take interest-free loans — but it was all for nothing. The money was misappropriated and the company has allegedly shut down," he said.
According to MHO secretary-general Datuk Hishamuddin Hashim, most victims were instructed to secure personal loans from multiple banks simultaneously, before being asked to surrender the entire loan amount for ‘investment’ purposes.
“The company’s modus operandi involved settling prior debts for victims to erase records from the Central Credit Reference Information System (CCRIS) or Credit Tip-Off Service (CTOS), before managing their new loan arrangements,” he explained.
He added that the Royal Malaysia Police’s Commercial Crime Investigation Department (JSJK) must now open an investigation under Section 420 of the Penal Code — the provision for cheating and dishonestly inducing delivery of property.
“We urge swift legal action to ensure those responsible are held accountable,” he said.- August 21, 2025
