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WEDNESDAY, JUNE 25, 1980
IN RELATION TO THE INDEPENDENT COMMISSION AGAINST CORRUPTION (AMENDMENT) BILL 1980, MR GRIFFITHS ASSURED MEMBERS THAT THE ICAC WOULD ONLY INVESTIGATE BLACKMAIL CASES BY A CROWN SERVANT ONLY WHEN THE COMMISSION +COMES ACROSS SUCH OFFENCES IN THE COURSE OF THE IR
INVESTIGATION INTO CORRUPTION CASES.+
OTHERWISE, HE SAID, SUCH CASES WOULD BE INVESTIGATED BY THE
POLICE.
CLAUSE 4 OF THE BILL HAS BEEN AMENDED TO INTRODUCE A TIME LIMIT ON THE DETENTION OF PERSONS WHEN OFFICERS OF THE COMMISSION ARE SEARCHING PREMISES.
CLAMPDOWN ON LOAN SHARKS WELCOMED ******
UNOFFICIAL MEMBERS OF THE LEGISLATIVE COUNCIL WELCOMED THE MONEY LENDERS BILL 1980 WHICH AIMS TO CLAMP DOWN ON LOAN SHARKS AND TO ENSURE BETTER PROTECTION TO BORROWERS IN ALL LOAN TRANSACTIONS BOTH AS REGARDS EXCESSIVE INTEREST RATES AND EXTORTIONATE STIPULATIONS.
+WE AGREE THAT EXISTING LEGISLATION IS NOT REALLY CAPABLE OF DEALING WITH THE PREVAILING EVIL OF LOANSHARKING, THE HON LI FOOK-WO SAID AT THE RESUMPTION OF THE SECOND READING OF THE BILL TODAY.
+TAKING INTO ACCOUNT RECENT LEGISLATIVE CHANGES IN THE UNITED KINGDOM AND THE FACT THAT OUR OWN ORDINANCE IS COMPLETELY OUT-OF-DATE, WE CONSIDER THE BILL TO BE VERY TIMELY.+
HOWEVER, HE ASKED THE GOVERNMENT TO ALLOW A PERIOD OF AT LEAST THREE MONTHS BEFORE BRINGING THE NEW LEGISLATION INTO OPERATION TO ENABLE EXISTING MONEY LENDERS TO MAKE OTHER ARRANGEMENTS.
MR LI POINTED OUT THAT THE CONCEPT OF THE BILL WAS TO REGULARISE THE EFFECTIVE RATE OF INTEREST WHICH MAY BE CHARGED ON UNSECURED LOANS TO WAGE-EARNERS WHO, FOR GENUINE AND LEGITIMATE REASONS, MUST APPROACH A MONEY LENDER INSTEAD OF A BANK.
UNDER THE BILL, A MAXIMUM EFFECTIVE RATE OF 60 PER CENT PER ANNUM IN RESPECT OF ANY LOAN AGREEMENT IS PROPOSED. ANY RATE EXCEEDING THIS MAXIMUM WILL NOT BE ENFORCEABLE AND THE LENDER WILL BE LIABLE TO PROSECUTION.
WHERE PROCEEDINGS ARE TAKEN IN ANY COURT IN RESPECT OF A LOAN ANY EFFECTIVE RATE OF INTEREST EXCEEDING 48 PER CENT BUT NOT 60 PER CENT PER ANNUM WILL BE PRESUMED TO BE EXTORTIONATE UNLESS, HAVING REGARD TO ALL THE CIRCUMSTANCES RELATING TO THE LOAN AGREEMENT, THE COURT IS SATISFIED THAT SUCH A RATE IS NOT UNREASONABLE OR UNFAIR.