Between a rock and a loan shark

WITH bank loans at more than $100,000, the only thing that seems to be standing between Hamdi (not his real name) and bankruptcy are his Pasar Malam business and his private sector job.

One of Hamdi's daughters tending his Pasar Malam food stall. Picture: BT/Bahrum Ali

Hamdi, who also owes money to relatives and friends, said he was also forced to borrow from loan sharks, because his monthly loan payments ate up most of his pay and even profits from his Pasar business.

He said his finances were not as bad when he was still working for a big company.

“I used to work for one of the strongest companies in Brunei before and my pay was not bad,” he said.

At the time, Hamdi was able to apply for loans, which were equivalent to 48 months of his salary.

He said he took out the loans to renovate his house and to use as capital for a business.

But the business did not materialise, he said, saying a friend had tricked him.

“Luckily, I have a side business which is run by my wife (not a Bruneian) at Pasar Malam,” he said. “The side income from the Pasar business sustains us and allows us to survive,” he said.

Hamdi said he also uses the income from the Pasar food business to pay down his debts.

After he left his high-paying job, where he said he was mistreated, Hamdi now only earns about $1,500 a month, much less than what he earned before.

But the worse part is, he said, his monthly liabilities are triple the amount of his salary.

“I have approached many relevant authorities begging for help and support, but my efforts have been fruitless,” he said.

“Recently I received zakat, courtesy of His Majesty. I really thank Allah (SWT) for the concern of His Majesty,” Hamdi said.

The zakat did not completely settle his loans, but at least “the extra money allowed us to breathe again”, he said.

Hamdi’s wife, who also joined the interview with the The Brunei Times, said if her husband had been treated well by his previous employer, their life would still be stable now.

But because he was mistreated, he had to quit, she said.

“I had to sell my house in my home country. My small cafe and even my mother there also helped us by sending some money to us in Brunei,” she sobbed.

She said that their daughters had to sacrifice every day and night to help her run their Pasar business.

“But sometimes, we really don’t have anything left at all because of these debts and we had to borrow again,” she said. She said their family helped as much as they could. “There was time when my brother-in-law only had $20 in his pocket but still he lent us the money because we were in dire straits,” she said.

“It is really sad and pathetic when the fruits of our sweat and labour of waking up early and staying up till late for our Pasar Malam business only end up going to our creditors,” she said.

She said that sometimes they did not even have the money for the daily capital. “What is left for us? Clearing our debts,” she said.

She recognised that borrowing from a loan shark who charges a 30 per cent interest is not a wise move, but “we do it out of desperation”.

Hamdi meanwhile tries to find other means to finance their debts. “I have approached TAP if I can withdraw some money out of my monthly contributions so that I can clear some of my debts,” he said.

“I am also hoping that someone could lend us a hand so I could settle debts to friends and the loan shark without charging any interest,” he said.

“I blame myself for not planning well. But at least I am working hard now to rectify everything. I just hope the relevant authorities are listening,” he said. The Brunei Times

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