Federal Government should explain why Bank Rakyat gave RM32 million loan interest-free

SHAH ALAM, 4 June: The interest-free loan given to businessman, Deepakl Jaikishan, should be explained by the Federal Government because it clearly shows an abuse of business policy by Bank Rakyat, which was established to help the poor.

The Member of Parliament for Batu, Tian Chua, said that the financial institute was established with social functions that are not the same with the functions of most banks in the country.


He said, therefore, Bank Rakyat should not be used for the interests of BN cronies.

“This issue needs clarification because Bank Rakyat was established to help those earning a low income and does not function like other banks.

“So, it should not be used with impunity in the interest of cronies,” he said when contacted by Selangor Kini.

In relation to that, Tian Chua urged those responsible to come forward to provide an explanation and to take action on these parties for abusing power and policy.


“We do not know the purpose the loan was granted, so we want it cleared up,” he said.

Previously, the former finance minister, Tengku Razaleigh Hamzah, also questioned the policy of Bank Rakyat which allows carpet dealer, Deepak Jaikishan, to repay his RM32 million loan without interest, saying that it is not common practice of banking.

He said that even Bumiputera traders do not get special deals like this when making loans with government banks, although Putrajaya has a pro-Bumiputera business policy.

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