Rédaction Africa Links 24 with Ghanaian Times
Published on 2024-02-22 09:30:00
The Microfinance and Small Loans Centre (MASLOC) has struggled to recover over GH¢291. 5 million that was disbursed as loans to small and micro businesses over the past 12 years. This amount is part of the GH¢304,345,925 that was advanced to beneficiary businesses from 2008 to 2020. The breakdown of the disbursement includes GH¢206,464,960.74 in cash loans, GH¢27,033.51 for a Poultry Project, GH¢74,206,593.01 for investment in vehicles, GH¢2,308,970.00 for tractor acquisition, GH¢20,909,282.17 for the purchase of tricycles, and GH¢429,085.16 for the PINCO Project.
Paul Sarbeng, Deputy Chief Executive Officer (CEO) of MASLOC, addressed the Public Accounts Committee (PAC) in Accra to discuss the outstanding loans. He acknowledged that the outstanding loan had become a legacy debt for MASLOC and that they were determined to collect it. He also mentioned that the management was implementing a program of action to recover the funds from the borrowers.
Sarbeng provided an update on the progress of the loan recovery, stating that they had developed a program of action that resulted in the initial collection of GH¢11.4 million and further recovery amounting to GH¢1.4 million. Despite the challenges posed by the COVID-19 pandemic, MASLOC had managed to achieve a 55% loan recovery rate.
However, the PAC members expressed concern over the slow rate of recovery and the significant amount of outstanding loans. Chairman of PAC, Dr. James Klutse Avedzi, noted that the amount retrieved so far was insignificant compared to the uncollected loans. He expressed disappointment in MASLOC’s performance, stating that collecting only about four percent of the total amount cannot be considered a job well done.
Dr. Avedzi highlighted the financial challenges MASLOC was facing and directed the management to submit an annual breakdown of the outstanding loans to guide the committee’s recommendations.
In conclusion, MASLOC’s struggle to recover the outstanding loans has raised concerns among the PAC members. Despite the challenges posed by the COVID-19 pandemic and other factors, MASLOC is under pressure to improve its loan recovery rate and effectively manage its funds. The management of MASLOC will need to work diligently to address these concerns and ensure the efficient recovery of outstanding loans in the coming weeks and months.
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