By Danesius Marteh
The chief executive officer of Bukon Jadeh group of companies, Liberia’s leading microfinance institution, Elton Datee Johns has welcomed a Central Bank of Liberia (CBL) conference on non-performing loans.
But Johns says the conference, which will be held at the Ellen Johnson-Sirleaf ministerial complex in Congo Town from September 9-11, is belated.
“We were invited to go there. I want to say thumbs up to Central Bank. They have been the mother of all banks.
“This is belated too. This is something that should have been held long time,” Johns stressed.
Johns says the CBL should have regulated the unnecessary competitions and or rivalries in the financial sector.
Speaking in an exclusive interview with our reporter on 1 September, Johns says the CBL should have introduced appropriate measures to prevent delinquent borrowers from moving from banks to banks and financial institutions to financial institutions taking loans and willfully refusing to repay.
“Banking institution fighting another banking institution. Microfinance group going against another microfinance group.
“There are too many delinquent borrowers around here today. Even at our own office, there are too many bad debts on the books that are affecting our business today,” added Johns.
According to him, non-performing loans are affecting businesses, financial sector and greatly contribute to unemployment.
“Bukon Jadeh is not the only microfinance group that has been greatly hit as a result of non-performing loans.
“Imagine banking institutions that have the means of safeguarding their cash but instead there are too many issues we have when it comes to non-performing loans.
“So I think it is welcoming decision but we hope and pray that Central Bank will continue this particular venture.
“It shouldn’t be something just for the moment and then automatically we can’t have another conference again. So let’s be able to have this conference regularly,” he emphasized.
Johns frowned on delinquent borrowers, who are gainfully employed by the government with some in senior positions, but are intentionally refusing to repay Bukon Jadeh.
He wondered what measures can be taken by the Central Bank against government officials, who have borrowed from banks, but are refusing to repay.
“You can’t have a business [like ours] that runs a system with 18-percent none performing loans.
“As an institution, we have suffered too many losses as a result of the inception of this government.
“There are scores of officials, who work in this government and who have the power and who are gainfully employed but they are not willing to repay loans they have taken from many financial institutions.
“And today we suffered great loss since the inception of this government and some of the officials, who work in this government,” added Johns.
He has promised to name and shame delinquent borrowers in the
media and to take legal action against them.
