CEDA suspends loan repayments for BCL contractors
Onalenna Kelebeile | Tuesday November 29, 2016 18:00
Speaking at last week’s commemoration of the Africa Industrialisation Day and Business Forum, CEDA chief executive officer, Thabo Thamane said the temporary suspension is going to put pressure on the agency’s balance sheet but it was a viable decision to make in light of the situation. Thamane, however said the decision does not stop the suppliers from continuing to pay from other alternative sources of funds.
The provisional liquidation is expected to last until February 2017 when the liquidators produce a report with recommendations on the way forward.
Thamane also added that they have also decided that all requests for funding from the SPEDU region be processed within a week to speed up funding. Thamane also noted that CEDA has funded projects to the tune of P140 million in the Selebi-Phikwe area of which P50 million has been invested in the agricultural sector.
Thamane also said they fund suppliers to utilise the horticultural processing plant.
The CEDA boss’ comments were echoed by the Selebi-Phikwe CEDA branch manager, Ntebogang Galeboe during a full council meeting last week. Galeboe said the suspension of loan repayments by CEDA does not mean that the loans are cleared.
Meanwhile, the Non-Bank Financial Institutions Regulatory Authority says it has already started receiving applications from insurance companies to suspend payments of monthly premiums by ex-BCL employees for six months.
Addressing a full council meeting here last week, the authority’s communications and public affairs manager, Tapologo Kwapa said they accept those requests from insurance companies to protect customers.
Councillors had wanted to know how former BCL employees who had insurance policies as breadwinners can be assisted so that they do not lose out on their policies as a result of unemployment. They also wanted to know what happens to the funds the employees have already contributed once the policies elapse. Councilors also wanted to know how safe pensions are once a company liquidates.
In his presentation Kwapa noted that they regulate pension funds, capital markets, cash loans, investment institutions, brokers as well as investment institutions among others by ensuring safety and soundness of the institution. He said this is necessary because in the past some financial institutions used to disappear with people’s funds.
He advised civic leaders to make sure that before buying shares they must ascertain that the companies they buy from are licensed by NBFIRA.
“We have had cases in the past where Batswana invested in companies that relocated and disappeared with all the funds. Be careful and be cognisant of the fact that investment returns are declared only once in a year. Batswana are losing money in great numbers and the most targeted are those who are paid bonuses and metshelo,” he said.
Kwapa further noted that the challenge they have encountered is that some people take policies before they fully understand them and advised them to pay attention to every detail in the contract before committing themselves.