PS Lao Enterprise, a company that produces food items such as meat, fish, rice, drinking water and imports various grocery and consumer products in Laos, has been in hot water for some time now, as it has continuously failed to issue full dividends to its shareholders as originally promised.
The Bank of the Lao PDR has repeatedly warned the public to be aware of illegal fundraising by PS Lao Enterprise, claiming the company has adopted various strategies to mobilize money from people illegally. The company has now been instructed by the bank to return all funds to investors before July 7th or be reprimanded.
As previously reported by The Laotian Times, despite being warned and fined to cease unlawful activities by authorities, the enterprise continues to dupe shareholders by luring them with outrageously high interest rates.
The central bank’s office issued a notice on Friday, urging members of the public not to fall victim to such illegal tactics.
As the company was established in 2012 as PS-Agriculture and Industry Development Import-Export Co, Ltd., a limited company, it has been prohibited to mobilize deposits or raise funds.
Recently, the company was involved in another business scandal where it had failed to issue full dividends to its depositors as pledged. The company had originally offered a monthly interest rate as high as six percent but soon after decreased it to 4.8 percent, and then even further to just 2-2.8 percent.
The company’s President, Ms Souknaly Thepsymeuang, recently announced at a press conference that the company was pleased to return the money to the many depositors of the enterprise, also claiming that her company had formerly stopped accepting deposits, even offering customers two options on how to withdraw their capital.
The first option required business partners or depositors to officially inform the company of their intention to withdraw the money, with the withdrawal to be made three months later.
The second option encouraged business partners to market the company’s products themselves in accordance with the amount they deposited.
Ms Souknaly has confirmed that several depositors have withdrawn their capital after the government intervened in the company’s illegal operation.
Despite Ms Souknaly’s admission that her company has stopped accepting further deposits, the central bank stated in its latest notice that the company has continuously changed its tactics over time to continue moving capital illegally.
The bank has stated that all the financial issues or debts the company owed to its depositors, shall fall under the company’s sole responsibility.
The bank has recommended for depositors who were swindled by the company to approach local courts or police officers in charge of economic affairs to seek further assistance and address their issues.
The company currently has almost 180,000 deposits valued at 853 billion kip.