GNAT Executives Meet Regional Councils Over Delayed Loans

GNAT Executives Meet Regional Councils Over Delayed Loans

The Western Regional Council of the Ghana National Association of Teachers (GNAT) took the lead to meet the National President of GNAT and other GNAT executives to explain why loans are delayed. The Chief Executive Officer (CEO) of the Teachers Fund was with the GNAT executives.

The General secretary of GNAT, Thomas Tanko Musah, also attended the regional council meeting which occurred on 11th July 2023.

See also: All GNAT Members Invited To Join One Telegram Platform

The first of its kind to appear before regional councils to explain details of financial challenges that the fund is facing, started from Western Region. However, perhaps, other regional tours will follow to explain issues to teachers.

The agenda of the regional tours is solely to address the concerns of members whose loans have been delayed for over three (3) months, which is unusual.

Summary of the meeting

1. The reason processing of loans is delayed: the Chief Executive Officer of GNAT explains that there is an unusual large demand for loans this year.

Also, the 30% salary increment has increased the affordability of members to take huge amounts of loans.

In addition, the Controller and Accountant General Department does not pay third-party deductions on time.

The three factors above have created the situation where processing of loans is delayed.

2. Defaulters: According to the GNAT executives, many teachers who took loans could not pay back the loans.

The situation which is unusual this year has revealed that teachers are travelling outside the country after securing loans from teachers’ funds and other financial institutions.

3. Relaxed conditions for applying for loans: The team from the teachers’ fund explained that they relaxed the conditions for applying for loans.

Many teachers therefore have the ability to access more loans than they would access based on the fixed conditions. This relaxed rule also contributed to higher demand for loans from the fund.

4. Disappointment over loan deductions by the controller: the team also stated that loan repayment deductions applied to salaries of teachers who have yet to receive the loans.

The team explained it was a mistake and apologized accordingly. However, they tried to secure a refund from the Controller and Accountant General Department to refund the affected teachers but to no avail. CAGD can not refund the money to the teachers’ fund currently.

Measures in place

1. The GNAT executives stated that they are making efforts to cash out some of their investment to solve the issue at hand.

Also, they continue to put pressure on the Controller and Accountant General Department to release their third-party fund deductions on time.

2. GNAT executives and teachers’ funds are making efforts to recover defaulting loans.

One of such measures is to submit a list of the headquarters of the Ghana Education Service and other relevant institutions to identify those who have travelled outside and those who have just changed jobs but are in the country.

3. Going forward, GNAT executives and teachers’ funds will enforce the conditions for applying for loans. That is, the member must contribute at least 10% of the loan amount and the repayment will be at least 1% of the loan amount.

4. Teachers has issued loan cheques to members who were deducted for loan repayment without receiving their loans.

Source: https://www.ebentrends.com/2023/07/on-emergency-regional-council-meeting.html

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