Govt fails to remit K418 m deducted from civil servants loans

Govt fails to remit  K418 m deducted from civil servants loans

GOVERNMENT FAILS TO REMIT OVER K418 MILLION TOWARDS REPAYMENT OF CIVIL SERVANTS’ LOANS IN THE LAST 4 MONTHS

By Michael Kaluba

Government has not remitted over K418 million over the past 4 months towards repayment of civil servants’ loans, forcing some affected micro financial institutions to suspend disbursements of funds to government workers until payments are made.

And some workers from a named micro financial institution who spoke through a representative on condition of anonymity say they have been sent on forced leave and now fear losing their jobs as their institutions may decide to downsize on the number of staff.

The workers say government is the largest client in the micro financial sector and its failure to pay funds on behalf of civil servants translates to no business for different entities who in turn will shut down some of their branches and downsize on labor force.

Various civil servants have loans with different micro finance institutions which government is mandated to pay on their behalf but has not done so over the past four months.

 

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