Government withholds civil servants’ loan remittances, probes illegal interest rates 

Government says it has deliberately withheld the remittance of some payroll-deducted loan repayments to banks and microfinance institutions over the past four months as part of an investigation into widespread non-compliance with lending laws, following allegations that some lenders were charging illegal interest rates that saw salaries of some civil servants being wiped out. 

“Over the past four months, Treasury acknowledges that there have been delays in the disbursement of payroll-deducted loan repayments to certain financial institutions. These delays, however, do not reflect any breakdown in public financial management systems.

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