Derma Bank to launch exercise to recover loans
People of Sakai refuse to pay basic rates
Derma Bank to launch exercise to recover loans
Derma (Brong Ahafo) 13 Dec.'99
The Derma Rural Bank is to launch an exercise to recover loans from defaulters.
Mr Stephen K. Koto, Chairman of the Board, said this at the Bank's annual general meeting at Derma on Saturday.
He said all avenues including legal action would be taken to recover the loans to save the bank from collapse.
A total of 751.6 million cedis granted for areas such as education, housing, trading, agriculture, funerals and health, are overdue.
Mr Koto said apart from the government salaried workers, all other beneficiaries have defaulted and described the situation as "very disheartening".
Out of 350 million cedis granted 47 farmers groups under the International Fund for Agricultural Development (IFAD) scheme, only 50 million cedis have been repaid.
To safeguard its image, the Bank has paid the balance from its own sources to the Bank of Ghana.
The Board Chairman appealed to the beneficiaries to honour their obligations.
Mr Koto said the bank made modest gains in its operations for last year adding that savings grew by 35 per cent from 463.7 million cedis in 1997 to 627.4 million cedis.
Its share capital increased by 43.9 per cent from 41.6 million cedis the previous year to 59.9 million cedis in 1998, but made a net profit of 20.8 million cedis as against 27 million cedis in 1997.
Apart from the loan recovery exercise, the bank would embark on a savings mobilisation programme to improve its operations.
The Bank spent a substantial amount to support the town's street lighting project and the on-going water project, which include the construction of a 160-cubic metre capacity water reservoir and the laying of pipelines.
The water project would be completed in April 2000.
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People of Sakai refuse to pay basic rates
Tumu ( Northern Region) 13 Dec. '99
The people of Sakai, a farming community in the Sissala District, have for the past two years refused to pay their basic rates of 300 cedis per adult.
The last time revenue collectors went there, the chief and his elders drove them away and warned them never to set foot in their village again.
They alleged that the revenue collectors have been selective in their work and do not collect the rates from certain families and households.
Mr Prosper Hoeyi, Sissala district budget officer said this at a two-day planning workshop on revenue mobilisation, organised by the district assembly for unit committee and assembly members, and revenue collectors at Tumu on Friday.
Mr Hoeyi, however, said the people have promised to fulfil their tax obligations if the defaulting households and families are made to pay their arrears.
Mr Robert Wavei, Sissala District Chief Executive warned that any salaried revenue collector who fails to collect 200,000 cedis a month would be made to make up the difference from his salary.
The DCE urged them to intensify efforts at revenue generation since the district has few resources.
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