THE National Court has dismissed an application by Fincorp for leave to seek a judicial review of a directive by Chief Secretary Isaac Lupari which stops all salary deductions from public servants for loan repayments.
Deputy Chief Justice Salamo Injia said yesterday that although there were merits in the case, Fincorp had failed to follow proper procedures.
He advised Fincorp to refile the application and to do so before the commercial listing judge as it was a commercial matter.
Several leading and finance institutions are also party to the application. They were, however, not named.
The action follows Mr Lupari’s directive last September to all Government departments to cancel all deductions for loan repayment by this month.
He said many civil servants were taking out loans and ended up having big salary deductions.
Yesterday, Fincorp’s’ counsel argued the interest rates charged by his client and others were lower than the “unlicensed loan sharks” who charged between 30% and 50% per fortnight.
He said there were almost 200 unlicensed loan companies in the country.
He submitted that Mr Lupari’s directive was a breach in natural justice as Fincorp and the other lending institutions were not given any opportunity to respond.
He said by stopping the deductions, Mr Lupari and the other two defendants –Department of Personnel Management Secretary Margaret Elias and Finance Department Secretary Gabriel Yer – had acted outside their given statutory power.