Update from emergency GNAT Regional Council meeting

Update from emergency GNAT Regional Council meeting

The National President and the General Secretary of GNAT attended an emergency meeting with the Chief Executive Officer of Teachers Fund and his team members to ponder over the delay in the processing of Teachers Fund loans and other related issues.

The said emergency Regional GNAT Council Meeting was held on Tuesday, July 11, 2023, at the Regional GNAT Secretariat in Takoradi.

At the meeting, they discussed a lot of bothering issues.

Below are what they discussed at the meeting with the way forward on how to address them.

The delay in loan processing

From the meeting, the CEO of Teachers Fund admitted that they are facing challenges in the processing of loans. He cited large volumes of loan applications from teachers as a result of the increase in affordability due to the 30% salary increase in 2023 and the delay in the release of money by the Controller and Accountant General’s Department to the Fund.

He said the delay in processing the loan is experienced by all other third parties. Adding, the CEO said the Fund has exhausted the loan budget for 2023 in June already.

Loan Repayment Defaulters

The Fund disclosed at the Council meeting that some teachers have taken loans from the fund but have failed to repay. In their investigations, the majority of the loan defaulters have travelled outside Ghana.

Relax of Conditions on Applying for Loans

One of the issues discussed was the relaxation of conditions for applying for loans. They told the Council that in the past, the Fund relaxed the conditions that teachers must satisfy before being granted a loan.

On the condition, it was said that a member’s total condition must be 10% of the amount one would want to apply for. Adding, they said a member’s monthly contribution must also be 1% of the amount applied for.

According to the CEO on that, he said the Fund has been flexible in applying these two policies in granting loans to teachers.

Teachers Fund CRM Platform

The CEO informed the Council that the Fund has secured a new software for the CRM Platform and it is being tested. As a result, the existing platform has been disabled. Members will no longer access information on the current platform using the www.teachersfund.org.ghmemberportal. The new software for the CRM Platform will be out before the year ends.

Loan Deductions at the end of June 2023

It was let out that at the end of June 2023, some teachers who have applied for loans but had not received their cheques were mistakenly deducted. The Fund explained that they anticipated receiving money from the Controller and Accountant General’s Department to make payments before the end of June but they the office disappointed them.

The way forward/discussed solution

1. The Fund is putting measures in place including redeeming some of the investments and also putting pressure on the Controller to release money to the fund for the fund to be able to meet the increasing volumes of loan applications.

2. Strict measures have been put in place to recover outstanding loan amounts. These measures include the submission of a list of loan defaulters to GES Headquarters to track those who travel outside Ghana and also leave GES to join other organizations in Ghana and also to the district GNAT secretariat to track loan defaulters.

3. Teachers Fund AGM this year will be looking into other measures being proposed by the Board and Management of the Fund to ensure that teachers do not run away with loan amounts.

4. The new CRM Platform will enable teachers to transact business with the Fund directly on the platform including loan applications. The new platform will be rolled out before the end of this year.

5. Strict Enforcement of Loan Conditions/Terms

The Fund said they have commenced enforcing the two (2) major loan conditions; 10% and 1% total contribution and monthly contribution respectively for a given loan amount.

6. All teachers whose loan deductions took place at end of June while they have not received their cheques have been issued their cheques.

The CEO and his team assured the members that they are doing everything possible to process loans on time and also address other related issues.

SOURCE: Coverghana.com.gh