Kagadi district issues guidelines on the management of salary loans

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Kagadi:- Kagadi district local government has issued guidelines on the management of salary loans in the district.

According to the 29 November 2019 letter issued by the district administrative officer, Mathias Ndifuna to all heads of departments, civil servants in the district have been misusing salary loans accorded to them by financial lending institutions which signed MOUs with the district and employees that seek such loans for their personal use.

Ndifuna says the matter has caused negative effects on the management of payroll, increased on the cases of loan defaulting and absenteeism /abscondment among borrowers.

Letter by the Chief Administrative officer Kagadi

He says the agreed terms and conditions of acquiring salary loans have been ignored by banks/money lending institutions and authorized officers who recommend/sign letters of undertaking which grossly affect performance management and service delivery.

Ndifuna has now ordered that loans must be granted to only employees who are confirmed in the public service, loans should be given to an employee who has been on payroll for a period of 4 months and above and before any application for a salary loan is endorsed by authorized signatories, the human resource should assess the affordability of the employee accessing the loan and shall endorse on the application before any other authorized signatories.

He adds that no employ shall be required to access a loan when he/she has an outstanding loan unless the affordability is ascertained as required and the head of human resource shall be required to open a loan register book where all loans should be registered for easy tracking and management.

Ndifuna says the move aims at ensuring effective management of salary loans and improvement on service delivery.

Gerald Abitegeka

Email:abitegekagerald@gmail.com

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