PAC chastises Northern Development Fund for non-recovery of GH¢2.3m tricycle loans

The PAC has condemned the North Development Fund for not repaying the GH¢2.3m tricycle loan

The Northern Development Authority (NDA) has yet to recover over GH¢2.3 million from beneficiaries of over 2,000 tricycles that were sold as soft loans.

The rickshaws were sold to beneficiaries at subsidized prices to help improve the economic standards of people living under NDA jurisdiction.

But the policy has been heavily criticized for being embroiled in corruption with some administrators accused of selling rickshaws cheaply for themselves.

2,037 tricycles valued at GH¢7 million were sold to farmers on credit contrary to the Board of Authority’s decision and only GH¢4.7 million has been recovered so far with more than GH¢2.3 million in arrears.

Speaking at the Public Accounts Committee sitting on January 20, the Acting Chief Executive of the Northern Development Authority, Sumaila Abdul-Rahman said the authority is taking the necessary steps to recover the arrears.

The committee asked what the Authority would do to recover the remaining money and Mr. Abdul-Rahman said it was trying to recover the money, including engaging the services of a debt collection company.

“We have recovered some, but we have not recovered the total amount. We have recovered GH¢185,000. We have however had a conversation with the defaulters, and they are willing to pay, and they have presented a payment plan.

“Another thing we are considering is engaging a debt collection company to go after the debtor to redeem the loan.”

Two deputy CEOs of the NDA, Patrick Seidu and Stephen Yir-engu Engmen were recently sacked from office amid allegations of corruption leveled against the Authority.

The post PAC chastises Northern Development Fund for non-recovery of GH¢2.3m tricycle loan appeared first on Citinewsroom – Comprehensive News in Ghana.

Read the Full Story