ALOR STAR: The National Cooperatives Movement of Malaysia (Angkasa) today urged the government to adopt its Credit Reporting System (Spekar) to regulate loans taken up by civil servants.
Angkasa deputy president Mutadho Bahri said the system should be expanded to all financial institutions to keep track of civil servant's existing loans and salary deductions.
He said, through the system, financial institutions no longer have to refer to multiple agencies to verify the financial record of each loan applicant.
“The Spekar system introduced by Angkasa three years ago has proven effective in keeping track of financial information, which include borrowers who are listed in the Central Credit Reference Information System (CCRIS), Credit Tip Off Service Sdn Bhd (CTOS) and the Angkasa Salary Deduction System (SPGS).
“Through the system, we are able to keep track loans taken from the government, cooperatives and banks.
“By using this system, we are able to check if a civil servant has an existing loan commitment which already beyond 60 per cent of one's gross salary,” he told reporters after launching the Kedah MyAngkasa Dialisis Centre at Taman Sri Duyung in Teluk Kechai here today.
Mutadho was responding to a report that over 49,000 civil servants might face the risk of bankruptcy following their failure in managing loan arrears.
On Sunday, the Congress of Unions of Employees in the Public and Civil Services (Cuepacs) president Datuk Azih Muda reportedly said that some civil servants were found to have applied for personal loans from financial institutions with the repayment amounts beyond their means.
He said the situation was getting more serious as there have been civil servants who had even forged salary slips when applying for loans.