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Business News of Monday, 29 August 2005

Source: GNA

Repayment of Poverty Alleviation Funds not encouraging-MCE

Koforidua, Aug. 29, GNA - About 739 million cedis out of the 1.3 billion cedis granted as loans under the Poverty Alleviation Fund (PAF) to 730 applicants between 2002 to 2004 in the New Juaben Municipality, had been recovered leaving over 896 million cedis unpaid.

This was disclosed by Nana Kwasi Adjei-Boateng, New Juaben Municipal Chief Executive (MCE) in his Executive Report to the Second Ordinary Meeting of the Third Session of the Fourth New Juaben Municipal Assembly on Monday at Koforidua.

He said the situation showed that there was a serious problem with the management of the fund, therefore, the Assembly was discussing with the Management of the Agricultural Development Bank (ADB), who are managing the Fund, on its effective management.

Nana Adjei-Boateng said the sustainability of the Rural Housing Improvement Loan Scheme was seriously being threatened by the high incidence of loan repayment default.

He said currently, 34 beneficiaries including Assembly members owed about 92.2 million cedis and called on the debtors to live up to their obligation and settle their debts to avoid any embarrassment. Nana Adjei-Boateng announced that the Assembly had given August 31, as the deadline for the re-allocation of non-occupied lockable stores near the Central Mosque in Koforidua to new applicants. He said the delay in the release of the Common Fund and the HIPC Funds during the first and second quarter of the year had slowed down the execution of approved projects in the Municipality especially new ones.

Nana Adjei-Boateng, however, said some projects in the education and economic sectors had been completed during the period. He said the Municipal Assembly, in collaboration with the Suhum-Kraboa-Coaltar District Assembly, was working for the location and development of a common final waste disposal site.