Govt Suspends MPs' Car Loan Deductions

Government has suspended the monthly car loan deductions from the salaries of MPs pending a review of their salaries. The MPs acquired the $20,000 car loans at the beginning of their four-year term and were expected to pay off by the end of their term.

However, some parliamentarians recently complained that they would not be able to repay the entire $20,000 car loan by the end of their four-year term unless their $300 monthly salary is reviewed upwards.

But even before the MPs’ grievance became public, the Finance Ministry had suspended the loan deductions. The Public Affairs Director of Parliament, Jones Kugblenu, told JOY FM that the decision to suspend the payment of the loan was based on the fact that the meagre deductions could not meet the repayment schedule.

He however added that the suspension of the payment should not be misconstrued as an attempt to wipe off the debt. “They are going to pay for it. It is not going to be a gift as some people are parading in certain quarters”.

It has been over a year now since the Finance Ministry suspended the repayment of the loans, but the MPs’ salaries have still not been adjusted. This is bound to deepen suspicions that the MPs will be left off the hook.

But Mr Kugblenu insists that the MPs are committed to repaying the loans. According to him, the “Parliamentarians were given these monies as loans and therefore they were required to pay, and as representatives of the people, they started to discharge their financial obligations until October last year”.

The MPs have so far paid a year’s installment, but Mr. Kugblenu could not state the exact amount paid so far.