Negligence on the part of the Domestic Trade and Consumer Affairs Ministry has caused some 7,000 people to lose more than RM100 million in investments made in a get-rich-quick scheme, charged an opposition member of Parliament today.

Speaking to reporters outside the Dewan Rakyat, Tan Kok Wai (DAP-Cheras) said this in response to the ministry's admission to the House that it had been careless in allowing an unlicensed direct selling company to advertise in the ministry's bulletin.

"Since the advertisement was published in a ministry's publication, it will inspire confidence in the company," he said, pointing out that the publication was even called the Consumer protection bulletin .

The company, Astromax Sdn Bhd, which is engaged in a get-rich-quick scheme, had a full-page advertisement in the June 2001 issue of the bulletin, on page seven.

Ironically, the same issue had the minister Muhyiddin Mohd Yassin on the front and third pages urging the public not to be deceived by get-rich-quick schemes as they contravene the Bank and Financial Institutions Act 1989.

After some 7,000 investors lost their money through the scheme offered by Astromax, they lodged their complaints to Bank Negara. Legal action was taken against the company on Oct 2 for causing investors losses amounting to RM1 million. The case is pending in the Kuala Lumpur High Court.

However, the sum involved is being disputed by Tan.

"Though the (Bank Negara) investigation obtained a total of RM1 million receipts, complaints lodged to me showed it to be more than RM100 million," he said.

Free bulletin

Earlier in the House, the ministry parliamentary secretary Wong Kam Hoong explained that the monthly bulletin was published by an appointed local company. The bulletin has a circulation of 30,000 copies a month and is distributed free to the public.

Responding to Tan's question on how the advertisement passed scrutiny, Wong said the publisher had not informed or obtained clearance from the ministry with regard to the advertisements submitted for publishing in the bulletin.

This was a breach of the advertising conditions agreed upon, Wong said, adding that the problem was compounded by the difficulty in ascertaining the real activities of any company.

"It is very hard for the ministry to identify the genuine activities of any company, including direct-selling companies. We will take note of this (mistake) and ensure that it won't happen again," he said, to applause from opposition MPs.

"It is human to make a mistake. The most important thing is, we take action and ensure that the (errors) won't be repeated."

He further urged Tan to forgive the ministry since next month is Ramadan (the fasting month of Muslims during which the spirit of forgiving is encouraged).

Legal action

Tan later told reporters that plans are afoot to set up a special committee comprising deceived investors to take legal action against Muhyiddin.

Muhyiddin is adviser for the bulletin. The editor-in-chief is consumer affairs director-general Syed Mestaddin Syed Abdullah.

Earlier, a commotion occurred in the House when Tan tried to explain the issue in his supplementary question but was urged by several backbenchers to sit down or ask direct questions.

Tan insisted on explaining the issue, saying that the briefing would let the parliamentary secretary understand it better and give a more thorough answer.

Angered by this, several backbenchers shouted at Tan to stop and urged Deputy Speaker Lim Si Cheng to invoke a standing order to evict the MP.

Kayveas retracts statement

However, the deputy speaker only told Tan to sit down and while the shouting match went on for 15 minutes, Tan adroitly stated his point.

Another shouting match occurred later when Housing and Local Government Deputy Minister M Kayveas (photo) said the government had to resort to lying to satisfy the public.

Yusof Yacob (BN-Sipitang) in a supplementary question raised his dissatisfaction with Kayveas' answer earlier that voluntary fire fighters and equipments are provided all over the country.

Yusof said that his constituency did not have enough voluntary fire fighters and their equipment are not up to date.

When Yusof questioned Kayveas, the latter said, "If we come here to give an accurate answer, Yang Berhormat (Yusof) says it is inaccurate. If we come here and give a white lie, only then will what we say be accepted."

Kayveas's reply was strongly protested by several backbenchers who said his statement was damaging to the government's image. They urged the speaker to ask Kayveas to retract his remark.

After five minutes of shouting in the House, the deputy minister retracted his statement.