BUTTERWORTH: She was running a small nasi lemak stall as her day job but on the side, she was into a big business – running a tontine fund that chalked up to more than RM100,000 via social media.

       It is not known exactly how long Nor Jaimah Kamarudin was running it but in 2018, her activities stalled.

       Housewives in Kuantan, Pahang, who took part in the fund lodged police reports and the Companies Commission of Malaysia stepped in to investigate and the 38-year-old mother of three was fined RM50,000 or a year’s jail yesterday in the Sessions Court here.

       She is the first person to be tried under the Kootu Funds (Prohibition) Act 1971 since it was amended in 2011.

       A kootu or tontine fund is a scheme whereby members put in money at regular intervals and after a certain time, the group leader withdraws the pooled funds and hands it to one of the members, usually via a lucky draw.

       Some kootu funds allow a member to get the pooled funds out of need on condition that they cough up more than the others when the fund pooling restarts.

       Although it is allowed among friends and family members, kootu funds are illegal when commercially marketed to strangers.

       Nor Jaimah appeared calm when she pleaded guilty to the charge under Section 3(1) of the Act before Sessions judge Norhayati Mohamad Yunus. The amended charge carries a maximum charge of 10 years’ imprisonment or a RM500,000 fine or both.

       Based on the charge sheet, Nor Jaimah is alleged to have run a kootu fund involving five individuals through social media between January and August 2018.

       She was charged in Kuantan, where the police reports were filed, in September last year. The case was later transferred to Butterworth.

       Dr Shamsher Singh Thind, who represented Nor Jaimah, urged the court to take into consideration that this was her first offence.

       “She is a mother of three sons aged between four and eight and runs a nasi lemak stall. She did not gain any profit from the kootu fund.

       “She has saved the court time and resources by pleading guilty,” he said.

       He urged the court to spare Nor Jaimah jail time and impose a reasonable fine.

       Malaysia Companies Commission (SSM) prosecuting officer Mohd Iqbal Mohd Yusoff said that based on the facts of the case, Nor Jaimah was said to have organised the tontine for a group of at least five people.

       “An investigation was carried out by SSM in September 2018 based on police reports made in Kuantan.

       “The evidence from the fund’s participants shows she used a personal bank account to receive and pay the proceeds of the money collected from the participants,” he said in court.

       He urged the court to mete out a sentence based on public interest and safety.

       “This is not a traditional kootu, which is legal. It has economically impacted the five women, who are housewives,” he said.

       Outside the courtroom, Mohd Iqbal said this was the first case in the country since the Act was amended in 2011.

       “Before the amendment, the punishment was a maximum of three years’ imprisonment or a RM10,000 fine, or both. The kootu money, in this case ran, to over RM100,000. We do not have an exact amount as only five people came forward and made a police report.

       “To our knowledge, there were more people affected by this case,” he said.

       Nor Jaimah paid the fine.