LPDB Cooperatives Enforces Zero Tolerance on Illegal Levies and Fraud, Vows Legal Action

The Revolving Fund Management Institution (LPDB) for Cooperatives has reaffirmed its commitment to a zero-tolerance policy against all forms of illegal levies, gratuities, fraud, and the misuse of its name in the financing service process. As an implementation of Good Corporate Governance (GCG), LPDB Cooperatives ensures that all revolving fund application processes are conducted transparently and professionally, free of any charge, and will take firm legal action against any violations committed by internal personnel or external parties acting on behalf of LPDB Cooperatives. As a government revolving fund management institution, LPDB Cooperatives has also declared war on all forms of fraud using its name and guarantees that every violation will be dealt with strictly according to the prevailing laws. LPDB Cooperatives stressed that the entire financing application process, from proposal submission, administrative verification, feasibility analysis, and approval to fund disbursement, is completely free of charge. Any request for money, rewards, commissions, gifts, success fees, or other forms of payment on behalf of LPDB Cooperatives is illegal and not part of the institution’s official mechanism. Director of General Affairs and Law at LPDB Cooperatives, Deva Rachman, asserted that business process integrity is the main foundation of all the institution’s operational activities. Therefore, all financing services are conducted by upholding the principles of transparency, accountability, responsibility, independence, and fairness as a tangible implementation of Good Corporate Governance. ‘We emphasise that applying for financing at LPDB Cooperatives is 100 per cent free of charge. There are no administrative fees, facilitation payments, acceleration fees, guarantee fees, or any other form of levy. If any party claims to represent LPDB Cooperatives and asks for money on the grounds of expediting the process, guaranteeing loan approval, or offering special favours, it is definitely a fraudulent scheme and not part of LPDB Cooperatives’ official procedures. Moreover, recently there have been parties falsely claiming to be officials of the institution and the government to commit such acts, and they will be dealt with firmly,’ Deva stressed. Deva emphasised that LPDB Cooperatives implements a zero-tolerance policy towards all forms of misconduct, not only against external parties misusing the LPDB Cooperatives name but also against employees or internal parties proven to have violated integrity or abused their authority.