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By FRANK ASAELI
FINANCIAL companies have been given some time by the Department of
Finance to recover monies loaned to public servants before salary
deductions are stopped.
Loans from financial companies and deductions to those companies were to
stop on July 4 but this has not happened as negotiations are currently
being undertaken by the Department of Finance and the Central Agency and
Coordinating Committee (CACC).
However, borrowers are also to repay their outstanding loans to the
financial companies.
Senior government officers said yesterday there was a temporary stop to
the issuing of new financial codes until further notice.
In the meantime, financial companies have been given till Nov 4 to
“recoup” loans given out to their customers before the Department of
Finance cease all financial codes for finance companies engaged with the
Department of Finance.
Chief Secretary to the Government Isaac Lupari in June directed the
Department of Finance to halt issuing of new financial codes to new
finance companies and cease all existing codes to finance companies
currently in operation.
Mr Lupari had barred public servants from borrowing money from financial
institutions or money lenders as a result of a decision by the CACC on
May 29.
The CACC was concerned that public servants had taken out loans and
allowed money to be deducted from their pay to repay loans at very high
interest rates. And as a result public servants took very little pay
home.
 
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