Thursday October 16, 2008
BULUHMAS Sdn Bhd, a company being investigated by Bank Negara for alleged illegal deposit-taking, has been directed to stop operations for three months, according to Berita Harian.Company secretary Abu Bakar Abu Hassan was quoted as saying that the directive took effect on Monday and during the period, Buluhmas could neither pay wages to its promoters nor recruit new members pending investigations.
He said the move would enable the company’s accounts to be updated and Bank Negara to investigate it under Section 25 (1) of the Banking and Financial Institution Act 1989, which prohibits any unlicensed individual from taking deposits.
Buluhmas and three other companies — Jazmeen (M) Sdn Bhd, Noradz Travel and Services Sdn Bhd and Eastana Farm Industries Sdn Bhd — were raided and being investigated by Bank Negara under the Money Laundering and Anti-Terrorism Financing Act 2001.
“We hope investigations will be completed early because 700 small and medium-scale companies depend on Buluhmas,” Abu Bakar said. Buluhmas has some 700,000 members nationwide as well as a chain of five grocery stores.
Formed in 2006, the company had been investigated by the Domestic Trade and Consumer Affairs Ministry because it allegedly operated a pyramid system business.
Abu Bakar said the company paid wages to promoters based on a system where “those who work more will get paid more” and did not practise get-rich-quick schemes or illegal deposit taking.
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