Clamp down on lending services

PUBLIC Servants have been effectively barred from borrowing money from financial institutions or money lenders, often referred to as “loan sharks”.
After learning of problems afflicting public servants as a result of loans and the burden or repaying with high interest rates, the CACC held a meeting on May 29 and decided to mount moves to discourage public servants seeking these loans.
As a result of the CACC decision, Chief Secretary Isaac Lupari has directed Finance Secretary Gabriel Yer to cease all financial codes for finance companies engaged with the Department of Finance.
Mr Lupari said the CACC was concerned that public servants had taken out loans and allowed money to be deducted from their pay to repay these loans at very high interest rates.
Mr Lupari said as a result these public servants took very little pay home, which had adverse effected them by placing them in desperate situations and prone to corrupt practices.
The Chief Secretary directed the Finance Department to halt issuing new codes to new finance companies and cease all existing codes to finance companies currently operating out of Finance Department disbursements by July 4.
This means deductions to salaries that occurred over the last pay week (last week) was the last, and that whatever outstanding arrears that public servants owed these finance companies would have to be worked out between themselves and their banks, but legal option was not an option.
Mr Lupari said he was taking these tough actions because public servants were taking time out during the day to pursue these “with loan sharks and not performing their duties”.
 

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