A new law will be drafted to protect private information, in particular financial transactions, said Deputy Minister of Finance II Awang Adek Hussin.

Awang also announced that a commission will be created, which will be led by the Finance Ministry and managed by Bank Negara. It will also involve other relevant ministries.

"We (the cabinet) have held two meetings so far. We expect the laws to be debated by early next year. We still need some time to ensure that all the details are considered," he said during a debate in Parliament today.

Last month, Deputy Minister in the Prime Minister's Department M Kayveas said private company Credit Tip Off Service Sdn Bhd (CTOS) had caused problems for many people in obtaining loans.

Kayveas also claimed that the company had not submitted its annual financial report to the Companies Commission of Malaysia for the past 10 years, the last being in 1997, stating that it earned RM1.2 million.

According to him, 90 percent of the 780,000 people listed in the CTOS database were Malays, and that over two days, he had received 400 e-mails complaining about CTOS.

Nothing wrong

Asked why there was a delay in the draft of such privacy laws, Awang said, "The creation of such laws is sometimes born from the needs of the day. Maybe in the past, it was not seen as a big problem."

In the case of CTOS, Awang said that there was "nothing wrong" with a private company collecting information.

"The information was obtained from newspapers, from declarations of bankruptcies. There's nothing wrong with people collecting public information.

"The information sold, however, can be inaccurate. After a problem (affecting an individual) is made public, a second announcement that the problem is solved is not made. Then it would appear bad," he said

He said that banks have been informed not to use data from CTOS when considering loan applications.

Earlier, Zaid Ibrahim (BN - Kota Baru) said there are bank associations which "occasionally need CTOS" despite the fact that Bank Negara has been established for a while.

"Why is it that the bureau of banks do not have a complete database. It needs data compiled by a private company," he said.

He said the information sold by private companies are sometimes inaccurate. Zaid said if "the bureau does not have sufficient information, then such information should not be used at all."

"We must protect individuals first. Summonses for errors can only be afforded by those who can afford it. The problem can be overcome if we have a specific laws where information can be verified and checked," he added.

Zaid suggested that a non-banking body take charge of such a commission.

"We should have an information commissioner. We already have many kinds of commissioner... sports commissioner and so forth, on areas which I think are not that urgent.

He suggested that banks and bureaus should answer to such an information commissioner.

Create tribunal

Zaid also suggested the creation of a tribunal, where "problems can be solved relatively effectively."

"Nobody wants their privacy to be intruded. The private citizen does not want to surrender his dignity. But today, people sell information as a commodity. They take advantage because we don't have laws that are strong enough," he said.

Meanwhile, Parliamentary Opposition leader Lim Kit Siang said CTOS was not alone in failing its financial responsibilities.

CTOS was slapped with 85 charges of transgression, including failing to produce financial reports, not holding annual general meetings and not displaying the company name.

"If we were to follow such standards, then tens of thousands of companies would be charged ... Is CTOS truly the issue here. Or is it because a third of Parliamentarians are listed in CTOS. It is because leaders in Umno are on the list, that's why the problems arose.

"I hope that we don't make CTOS a front for some other issue. It is unfair that the heavy handedness of the state is used on a single company," said Lim.

Over the weekend, two directors and two secretaries of CTOS were charged in separate courts for a total of 85 charges under the Companies Act 1965.