MASLOC Begins Prosecution of Loan Defaulters

credit: Samuel Agbewode

Fear is gradually mounting in the Volta Region among beneficiaries of the Microfinance and Small Loans Center (MASLOC) loans scheme, as the defaulters of the loans are facing prosecution at a magistrate court in Ho for their inability to pay back loans granted them during the New Patriotic Party (NPP) administration.

The Volta Region branch of MASLOC has so far processed over 200 loan defaulters for court. The counsel for MASLOC, Mr. Carlos De-Souza, told The Chronicle in an interview that the decision had been taken because the defaulters have, since 2009, not made any satisfactory arrangements to pay back the loans.

According to him, some of the beneficiaries think the loan was rather a gift given to them by the government, and did not, therefore, see the need to retire them.

He, however, said not all the beneficiaries had refused to pay, and that there were decent ones who have paid, but the staff who received them had run away with the money.

He mentioned Paul Yevu and Edward Dzah as some of the staff who had misappropriated funds and were currently on the run.

Mr. De-Souza further told The Chronicle that MASLOC was owed a whopping GH ¢1,000,000 by defaulters in the Volta Region, adding that efforts would be made to retrieve the money.

He hinted that many more people would be prosecuted, and that the 200 persons currently standing trial, was just a fraction of those who owed the scheme.

The Acting Regional Manager of the scheme, Mr. Victor Atiase, on his part, observed that most of the beneficiaries were into trading and farming, and that the loan scheme was meant to support the less-privileged in society to grow their businesses to help alleviate poverty in the country.

He said in the past, field officers or credit officers gave out loans without making efforts to recover them, noting that currently, MASLOC had a 99% loan recovery rate, because the credit officers who gave out loans to beneficiaries had to undertake preliminary investigations to find out as to whether the applicants for the loan facility would be in position to pay back or not.

Mr. Atiase continued that currently, credit officers do credit appraisals and monitor the various business activities and offer professional advice that would enable the beneficiaries to make returns on the money, which would make him or her able to repay such loans.