MPs call for urgent action to protect citizens from investment scams

TDT | Manama

Email: mail@newsofbahrain.com

MPs have backed an urgent call for action to shield citizens from fraud dressed up as investment.

Parliament agreed yesterday to press for tougher steps against schemes that draw in small and medium savings under the guise of trading or money placement, yet offer no real guarantees to those handing over their funds.

The proposal was tabled by MPs Bader Al Tamimi, Ali Saqer Al Doseri, Hassan Ebrahim, Abdulhakeem Al Sheno and Dr Ali Al Nuaimi.

Al Tamimi told the chamber that recent months had seen a rise in the marketing of speculative ventures in many forms.

“These activities aim to attract small and medium capital for placement under the cover of investment, without genuine guarantees for the owners of that money,” he said. “This calls for preventive action to protect citizens’ savings and to preserve the resources of the economy.”

He said action was needed to prevent the drain of community assets and to reinforce the role of licensed bodies overseeing investment and financial services.

Protection

“The protection contained in financial laws must be brought into effect to avert the risks linked to these activities, which amount to harmful practices,” he said.

Awareness campaigns alone would not suffice, he added.

“There must be stronger oversight by the competent bodies to curb unlicensed activity or operations conducted without adequate guarantees, and those responsible must be pursued through the relevant authorities in line with the law.’

The explanatory note attached to the motion grounded the request in constitutional principles.

Justice

It cited Article 4 of the Constitution, which states that “Justice is the basis of governance” and names security, equality and social solidarity among the pillars of society guaranteed by the State.

It also referred to Article 5(a), which describes property, capital and labour, in line with Islamic justice, as core components of social order and national wealth, regulated by law.

The motion seeks to entrench financial transparency, curb unlawful or informal economic activity, protect citizens’ savings from exploitation and shield the economy from fraudulent practice.