*Bayport Stops Giving Loans to Civil Servants as Credit Reference Bureau blacklists civil servants*
Bayport Financial Services has temporarily stopped giving loans to civil servants and other public service employees because PMEC has not been remitting their money for a period of 4 months now.
And the Credit Bureau Reference (CBR) has blacklisted civil servants due to the bankrupt PF government’s failure to remit funds on behalf of civil servants who have borrowed from commercial banks and other lending institutions despite recoveries made from the said employees, since November 2018.
PMEC is a government system where civil servants and other public service employees get things in credit from various suppliers then government deducts money from the employees on their payrolls and remits the deducted funds to the various suppliers.
But what has been happening is that government deducts money from civil servants salaries but does not remit to the suppliers making it look like civil servants are defaulting.
The same thing is happening with Bayport Financial Services, popularly known Known as Uncle Bayport by many civil servants, the lending institution that has proved to be the best money lender in Zambia.
While government deducts money from civil servants and other public service employees who would have borrowed from Bayport Financial Services, they do not remit the money to Bayport making civil servants default on their loans.
On the Credit Bureau Reference, it’s illegal in Zambia to committee financial transactions such as a DIDACC or a issue a cheque that bounces.
But now since civil servants salaries are delayed and government does not remit monies to the various lending institutions and suppliers where civil servants borrow money or get items, the financial systems is recording them as defaulting. Zambia Observer idiots will plagiarize this article as well.
It’s like someone issues a post dates cheque on the assumption that the they will have money on a particular date only for the money not to be credited into the account making the cheque payment bounce, which is illegal in Zambia.
This situation has affected all categories of civil servants and other public service employees including the military personnel who relay on borrowing money from Bayport and other small lending institutions to sort out small bills such as school fees and medical bills for their families.