About 40 per cent of 7,200 Tabung Ekonomi Kumpulan Usaha Niaga Nasional (Tekun) borrowers have failed to repay their loans since 10 years ago.

Penang Tekun director Mohd Suhaimi Ismail said the fund's management were  intensifying efforts to trace the 2,880 errant borrowers and would take legal action against them.

He said bumiputera entrepreneurs borrowing from Tekun should realise their responsibility of repaying their loans so that the money could be used to help other loan applicants.

"They had taken loans of RM500 to RM50,000 since 2001 as capital for their business," he said after attending a poverty eradication programme for the Pinang Tunggal state constituency in Kepala Batas today.

It was officiated by Pinang Tunggal assemblyperson Roslan Saidin with Fama northern region director Mohd Radzi Mohd Hanafiah also present.

At today's event, Tekun also gave out RM186,000 in loans to 18 entrepreneurs to expand their business.

Mohd Suhaimi said in the last 10 years, Tekun had given out RM80 million in loans to entrepreneurs in various sectors such as sundry retailing, agriculture, livestock breeding, aquaculture, construction, tourism or recreation, education and transportation.

- Bernama