No personal guarantee!
The giver of the loan should now carry the burden of responsibility to the taxpayers.If this isn't abuse of the first order what would you call it? It's not the recipient fault if the government acted so stupidly.Those involved in giving out the loan should also be investigated.
It is now clear why the money was used for what it is not intended for.This soft loan is softer than soft, abnormally low interest rate, no collateral, no director's personal guarantee, it is as good as giving the money away for free.
"The loan agreement has been signed. If we don’t pay back, we will be declared bankrupt or locked up in jail. We will pay every sen plus interest. The question of misappropriation does not arise,” said Wan Shahinur Izmir, who is minister Datuk Seri Shahrizat Abdul Jalil’s son.
Come on man! Who are you kidding? How is the government going to sue you personally for recovery of the loan if you did not sign personal guarantee?
My company had borrowed tens of millions before from banks and all directors were made to sign "Joint and Several Guarantee" in spite of more than sufficient securities given to the banks.
If the company folded and can't pay up the loans and there happen to be diminution in the value of the securities, the directors are fully liable for the amount including all interests and if they failed to make good the banks would declare every director a bankrupt.
The government, probably, can charge the directors for CBT (Criminal Breach of Trust), which, sometimes, is difficult to prove in a mismanagement.
Misappropriation is a crime, mismanagement is not.Buying properties under the company's name for investment or even to house working directors is also not a crime, it becomes a crime only if they are in your personal name using company's fund to purchase.It would also not be a crime if the company gave you a housing loan duly approved by the BOD (Board of Directors).
You see, whichever way the government is going to be the biggest loser if the project failed.
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