Magistrate to woman: Loaning personal money very risky

By ZEDAIAH KANAU
A 24-YEAR-OLD woman who spent four nights in prison was told by a Boroko District Court magistrate to think carefully when loaning personal money because such ventures were risky and informal.
Magistrate Rosie Johnson on Monday told Evelyn Philip from Kompiam in Enga that loaning out money was a risk because such activities were unregulated with no proper documentation to warrant the debtor to pay on time.
Johnson said people engaging in handing out loans without proper licencing were conducting business in a black market.
“When banks want to provide loans, they get licenced first from the Central Bank.
Likewise, if people want to offer loan services they must register their business in order to provide such services,” Johnson said.
Johnson advised Philip that the proper way to deal with the matter was to take it up with the court and have the debtor summoned to repay the loan.
Philip appeared from custody in court charged with damaging the windows of her alleged debtor Maliam Moses at East Boroko, Tari block on Dec 26 out of frustration because Moses had not repaid K1,500 he had borrowed from her.
Philip, who pleaded guilty to the offence, was drunk that day and went to Moses’ house and threw a rock through his window.
“There is a proper way to deal with the issue but you (Philip) decided to take a short cut which has placed you in trouble,” Johnson said.
Johnson told Philip that the maximum sentence for her offence was a prison term not exceeding two years and a fine of K4,000.
However, Philip was discharged from custody and let off with a caution.