A police report was on Thursday lodged against the National Co-operative Organisation of Malaysia (Angkasa) to stop them from holding an event to promote their new venture the Islamic Cooperative Bank.

In his report, cooperative member Noor Zarinan Zainul in Subang Jaya called for the police to stop the Angkasa event at Holiday Villa hotel there on Jan 14 and 15, as the apex organization has yet to obtain permission from Bank Negara Malaysia to use the term ‘bank’, as required by Section 15 of the Bank and Financial Institutions Act 1989.

However, ASP Ang Hock Ling had on the same day forwarded the matter to Bank Negara Malaysia, urging it to take action as it is under the central bank’s jurisdiction.  

Speaking to Malaysiakini yesterday, Noor Zarinan who was representing Koperasi Rangkaian Sahabat Dunfun Berhad, Insan Bantu Insan Kuala Lumpur Berhad, Koperasi Ma’ahad Tahfiz Tijarah Gombak Berhad and Koperasi Pengurusan Tanah Malaysia, said that Angkasa is currently embarking on a nationwide tour to introduce the bank and to recruit investors.

“They had a session in Terengganu under the Islamic Cooperative Bank banner earlier this month,” he said.

An invitation was also sent out by Angkasa to a cooperative in Perak, inviting them to a similar Islamic Cooperative Bank event in Langkawi on Jan 6 and 7.

 

On Dec 10, the apex body sent an invitation to a cooperative in Kuala Lumpur, detailing that the event would involve a briefing about the products of the bank by Angkasa and investment prospects, by the bank’s chief executive officer.

On Dec 6, Angkasa president Mohd Ali Baharum told media that the venture will be referred to as the Koperasi Masraf Angkasa pending the central bank’s approval.

“We have also lodged a complaint with Bank Negara Malaysia’s complaints department, which has convened a meeting to decide on its next course of action by today (Friday),” said Noor Zarinan.

Bank Negara Malaysia had on 30 Dec told Malaysiakini that they had informed Angkasa against using the term ‘bank’ and had been assured that the apex body will steer away from doing so.

Bank Negara tightlipped

Contacted today, the central bank refused to comment on whether any action will be taken against the cooperative body and reiterated that any parties using the term ‘bank’ without approval is liable to be punished.

The offence is punishable with a 5-year imprisonment, a fine of RM5 million, or both.

In the case of a continuing offence, a person shall be liable to a daily fine not exceeding RM5,000 for each day the offence continues.

On Dec 28, Mohd Ali said that Angkasa has received approval from the Cooperative Commission of Malaysia to set up a bank, with a paid-up capital of RM300 million.

They have collected a capital of RM50 million and was confident of meeting their target of RM300 million.

It is expected to set up the bank next month.

Angkasa spokespersons could not be reached for comment.