PS company awaits government advice on its operations
PS company awaits government advice on its operations
The PS-Agriculture and Industry Development Import and Export Co., Ltd. is awaiting assistance from the government after receiving numerous complaints from the public.
The complaints arose after the company encouraged people to deposit money that would earn them high interest rates. But the government warned people that this practice was illegal so many people withdrew the money they had deposited.
To inspire confidence among the company’s customers, protect the rights and interests of the company and increase understanding among the public, the company is asking the government to inspect, consult and provide feedback, company President MsSouknalyThepsymeuang told local media yesterday.
She believes that the relevant sectors of government, in particular the Bank of the Lao PDR and the Ministry of Industry and Commerce, will assign a taskforce to work with the company to improve and resolve the company’s business operations in line with the law.
The government’s recent warning over contributing money to businesses rather than banks, in order to get more interest, created a lack of confidence among many depositors. Some suspended their business and withdrew their funds from the company, MsSouknaly said.
Customers ordered products, mostly drinking water, from the company from 2014 until the beginning of this year using 204,353 deposits containing more than 904.7 billion kip, she added.
Some 22,290 depositors stopped ordering products from the company starting in 2014 until last month and withdrew deposits worth over 100 billion kip.
The company now has almost 180,000 deposits valued at 853 billion kip.
The company gives money owed to depositors via banks such as the Banque pour le Commerce Exterieur Lao Public (BCEL), Agricultural Promotion Bank and the Lao Development Bank. Starting from the beginning of 2014 up until last year the money disbursed amounted to almost 400 billion kip, MsSouknaly said.
The company is still allowing depositors to withdraw their money. Those who joined the scheme receive interest of 2-2.8 percent a month but PS is no longer encouraging people to deposit money.
The company operates a variety of businesses including drinking water, organic vegetable products, chicken and fish farms, floating restaurants and tourism, retail and wholesale units, a rice mill and a noodle factory but its main product is drinking water.
Starting next month, the company will launch a new drinking water called GMP. Those who buy this product can enter a lucky draw by using the number stamped on the inside of bottle top, MsSouknaly said.
The PS-Agriculture and Industry Development Import and Export Co., Ltd. was established and approved by the government in 2012 with registered capital of 900 million kip.
