Signs of Coming Armageddon: Gov’t Employee Loan Deductions Missing

The Akufo-Addo government has in the past three months, failed to forward millions of cedis in loan deductions from the salaries of public sector employees, Whatsup News has gathered.

According to reliable sources, since December 2021, third-party institutions that advanced loans to public sector workers have not received repayments from clients despite the government deducting the loans owed by these workers.

This has led to anxiety among banks and savings and loans companies that need these loan repayments for business, sources say.

According to investigations, the loans taken by workers were duly deducted at source by the government through a platform called the Third Party Reference System (TPRS).

TPRS is a system that allows Third Party Institutions (TPIs) like banks and savings and loans companies that lend to public sector workers to directly deduct loan repayments, insurance premiums, welfare contributions, and credit union deductions from salaries of government employees at source.

However, the deductions are made by the Controller and Accountant General’s Department and then forwarded to the Bank of Ghana for onward transfer to the creditor institutions.

However, a desperately broke Akufo-Addo administration had reportedly ambushed these funds and has refused to forward them to the creditor institutions.

Deductions for December 2021, January and February 2022, amounting to millions of cedis, are yet to be paid, insiders tell Whatsup News.

This development is new as never has the Bank of Ghana which is supposed to forward the deductions to the institutions, defaulted for three months in a row in the last seven years.

Apparently, the government’s hijack of workers’ loan repayments has added to the huge Non-Performing Loans (NPLs) for some of the banks as the central bank acknowledged recently.

Source: whatsupnewsghana