AUGUST 5 —After the outbreak of the CDTUP scam in early July, a series of vigorous actions was taken by the Domestic Trade, Cooperative and Consumerism Ministry, including raiding the CDTUP headquarters and branch offices in various states, tracing the company’s huge funding sources and warning its leader Zhang Jian that if he does not show up, the government would seek the Interpol’s help to have him arrested.

Domestic Trade, Cooperative and Consumerism secretary-general Datuk Seri Alias Ahmad stated that since CDTUP’s illegal operation in the country has involved amounts in excess of RM300 million, the government would probe the company under three laws, namely the Direct Sales and Anti-Pyramid Scheme Act 1993, the Penal Code and the Anti-Money Laundering and Anti-Terrorism Financing Act 2001. Alias has repeatedly warned that the CDTUP is an illegal direct selling company that can no longer continue operating and if it continues to operate, law enforcement authorities will attach the company and confiscate its property.

The ministry said it categorically but the CDTUP still pursues its own way. The raided branch offices resumed operation the next day and an opening ceremony was held as scheduled. Although some roadside “future millionaire” giant billboards had been pulled down, some others were put up at the same time.

Zhang Jian did not show up but kept speaking through video clips online. Even worse, the agents have continued to hold high-profile events, and even denounced Chinese newspapers at the so-called refunding conference, surrounding and intimidating reporters arrogantly. The CDTUP has gone further to make use of orphanages and schools, publicly showing huge piles of cash to achieve the purpose of publicity and hype.

Since the government has identified the CDTUP as an illegal company that can no longer continue operating, it is apparent that the company’s move to continue holding high-profile activities has ignored the government’s warning. How could the Domestic Trade, Cooperative and Consumerism Ministry, as well as the Home Ministry turn a blind eye to it, allowing the situation to continue?

During the outbreak of the scam in July, Alias revealed that the Domestic Trade, Cooperative and Consumerism Ministry has started investigating the CDTUP since February this year. Why couldn’t it uproot the company involved in illegal business which has violated the law if it has investigated the company for nearly six months?

The ministry has stressed the need for Zhang Jian to show up to clarify the direct-selling activities, but such an argument is illogical. Since the government has stated that Zhang Jian will be arrested, would he still show up in the country? Does it mean that if Zhang Jian forever does not show up, the law enforcement authorities will have no way to take action against the pyramid operation, and have to let Zhang Jian’s agents continue domineering in the country?

Pyramid operation involves cheating and although the country has the Direct Sales Act to control direct-selling to prevent the people from being cheated, many people are still ignorant and to earn quick money, they become victims of pyramid operation. The Federation of Malaysian Consumers Associations (Fomca) had lodged a police report as early as in January this year regarding the involvement of cheating in CDTUP operation, but law enforcement authorities did not take timely actions.

The government should promptly deter any pyramid operation before it expands and once illegal direct selling activities are detected, immediate and severe punishment actions must be taken against those who are involved to avoid more people from becoming victims.

This article was first published here.

*This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail Online.