REVEALED: Asha Microfinance Bank ‘Gives Loans to Employees’ to Settle Customers’ Debts
June 9,2022
Debo Orekoya (not real name), an employee of Asha Microfinance Bank, has accused the management of the Bangladeshi-owned financial institution of ill-treating its workers.
Orekoya told FIJ that the unfair treatment Asha MFB subjects its workers to are far worse than the losses they are made to pay for when loan debtors default.
“Whenever customers default by not paying their loans, the management of the bank would give loans to us, the employees, to enable us pay what such customers are owing,” Orekoya said.
“Asa Bank closes its books in December of every year. So, the debts you have accumulated during the year through the loans given out to customers are calculated and then you’re asked to pay for them. This is their only option of getting these monies back.
“What happens is that they calculate all the monies owed by clients assigned to an employee and then divide it by 12. This means that the loan will be deducted from the employee’s salary for the following one year.
“This sometimes run into millions of naira, and it does not stop the company from adding further liabilities to you if you still have defaulting clients.”
Orekoya also added that in some cases, and despite paying off loans, employees are wrongly accused of misappropriation of funds and dismissed.
“However, we are not able to recover most of our loans because the company’s loan guard is very poor,” he said. “Even after the dismissal, some ex-employees continue to pay debts as loans run into millions.”
He said the employees in this category are made to repay these loans with interest.
“We are required to pay these loans with seven percent interest. Initially, it was 14 percent. It was later reduced,” he said.
“But look at this: when staff are forced to pay cash-in-hand and liabilities with their salaries, why won’t they misappropriate funds? Why won’t they steal money? How do you expect them to survive? The conditions are frustrating.”
He said employee welfare is one of the least prioritised things by the management.
“I once picked up a woman who ran away with the loan I gave her for two years. She was to repay N15, 000, but failed to do so. I was forced to take her to my office. She had not spent more than two hours when her family brought the police and accused me of kidnapping her,” he said.
“I was arrested and spent the night in jail. Officials of Asha Bank only came to secure my release the following day around 3 pm.”
Orekoya told FIJ that the maltreatment from the bank’s management thrives because some indigenous senior officials also aid the policies.
“Most of the Nigerians working in the head office who ought to protect other people are the ones aiding it. Also, whenever a CBN official comes to inspect, the management would bribe this person with money and gifts that would distract the official from the records of the documents. The corrupt acts have eaten deeply; they didn’t start today,” he said.
In an earlier report by FIJ, the microfinance bank is accused of maltreating its employees, especially in the area of loan recovery.
FIJ contacted Asha Microfinance Bank via the email address available on its official website, but a response had not been received at press time.
