Pay your dues, Ithete tells Agribank defaulters
The deputy minister of finance, Natangwe Ithete, has rejected claims that defaulters who owe Agribank a combined N$754 million did not pay their loans because of the drought.
Responding to questions by Popular Democratic Movement parliamentarian, Vipuakuje Muharukua in the National Assembly on Thursday, Ithete said the majority of Agribank’s clients who are in arrears “own flourishing businesses”.
“I must also add that many of these clients are professionals with managerial and leadership positions,” said Ithete.
He added that because their loans are advanced by a public enterprise, they however opt not to service them until arrears accumulate to high amounts.
The bank has made numerous efforts to get clients who are in arrears to make arrangements for repayment.
But these calls have fallen on deaf ears, simply because the bank is state-owned, Ithete said.
“With this mind-set and customer behaviour, we will not sustain the bank,” he said.
He urged those in arrears to do the right thing and pay their loans to enable the bank to serve others in the future, or they will have to face the consequences.
Not an option
Writing off of the arrears or part of the arrears is not an option for the bank, the deputy minister said.
“Some clients have been farming and marketing their animals but not repaying their loans and others have neglected farming. Should they just have their loans written off?” he asked.
It is argued that the majority of the bank’s defaulters hold positions of authority in government or in the private sector.
“Why would an honourable member of this august house, for example, have their arrears written off? Why would the bank do the same for a successful business person or a manager in a private company or public enterprise?” he asked.
The deputy minister then reiterated how patient the bank has been with its clients.
He said the majority (64%) of arrears are older than four years, whereas others date back to 15 years.
“This indicates that most of the arrears extend beyond recent droughts,” he said.
Ithete’s remarks come at a time when Agribank is on the verge of repossessing and auctioning off farms belonging to defaulters who owe it. - Nampa
Responding to questions by Popular Democratic Movement parliamentarian, Vipuakuje Muharukua in the National Assembly on Thursday, Ithete said the majority of Agribank’s clients who are in arrears “own flourishing businesses”.
“I must also add that many of these clients are professionals with managerial and leadership positions,” said Ithete.
He added that because their loans are advanced by a public enterprise, they however opt not to service them until arrears accumulate to high amounts.
The bank has made numerous efforts to get clients who are in arrears to make arrangements for repayment.
But these calls have fallen on deaf ears, simply because the bank is state-owned, Ithete said.
“With this mind-set and customer behaviour, we will not sustain the bank,” he said.
He urged those in arrears to do the right thing and pay their loans to enable the bank to serve others in the future, or they will have to face the consequences.
Not an option
Writing off of the arrears or part of the arrears is not an option for the bank, the deputy minister said.
“Some clients have been farming and marketing their animals but not repaying their loans and others have neglected farming. Should they just have their loans written off?” he asked.
It is argued that the majority of the bank’s defaulters hold positions of authority in government or in the private sector.
“Why would an honourable member of this august house, for example, have their arrears written off? Why would the bank do the same for a successful business person or a manager in a private company or public enterprise?” he asked.
The deputy minister then reiterated how patient the bank has been with its clients.
He said the majority (64%) of arrears are older than four years, whereas others date back to 15 years.
“This indicates that most of the arrears extend beyond recent droughts,” he said.
Ithete’s remarks come at a time when Agribank is on the verge of repossessing and auctioning off farms belonging to defaulters who owe it. - Nampa
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