The PF government is broke and they’re using civil servant loans and taxes to reduce their expenditure due to non remittance.
This is how it work ;
1: The government has an MOU with banks that allows civil servants to obtain loans from banks at special interest rates.
2: The government makes loan deductions from the civil servants salaries and remits that money to the bank on behalf of the civil servant.
What’s happening now is that the PF government has no money, they are deducting these loans from the civil servants salaries but they are not handing over money to the banks.
So in desperation, the banks are freezing civil servants bank accounts on pay day, and then deducting the loans from the salaries before they unfreeze the account.
So the civil servant is now subjected to two loan deductions on a small salary.
Imagine you are a civil servant with a nett salary of K6000.
You get a 3 year loan to buy a second hand car, your monthly salary deduction by the government is K2500 which leaves you with K3500 per month.
Then the government stops paying the loan to Standard Chartered Bank.
The bank now decides to freeze your account and make another deduction of K2500 from your account.
What will you be left with on pay day?
You’ll be left with K1000 to pay rent, feed your family, buy fuel, electricity and pay school fees.
Can you survive?
The PF has also stopped remitting NAPSA, PAYE and even NHIMA contributions for civil servants because they don’t have money. They’re just lucky because those are government institutions that can’t take action against them but in the long run it will cause serious financial problems in these institutions especially NAPSA.
Copyright @NDC MEDIA 27.06.2020