Bankrupt Credit Unions chase debtors

Some Credit Unions in Kumba, which are on the verge of collapse, are currently facing hard times recovering loans granted to certain persons in the metropolis and beyond, The Post has learnt.

Faced with the difficulty of redeeming the loans, most of the credit unions have opted to disclosing the names of people who have failed to repay their loans.

For over a month, scores of names of persons who have failed to repay credit union loans have been announced repeatedly on the news bar of cable networks in Kumba.

In some of the announcements, the credit union leaders appeal to the general public to assist them in recovering the money from people. Others have repeatedly been threatened with legal action and the sale of their property.
A source hinted The Post that growing liquidity concerns within some of these financial houses is already splitting their Boards.

The politics of granting loans and the sharing of dividends have reportedly been key areas of discord.

Sometimes, influential members of the credit unions are said to put aside expert advice from employees and grant loans to business persons without any collateral.

The story is told of a credit union in Fiango-Kumba that crumbled after a loan of FCFA 25.000,000 was given to a businessman without any collateral.

It is reported that, at the time the businessman was expected to repay the money, he resorted to bribing some influential members with FCFA 500,000 which ended up perverting the recovery of the money.

On several occasions, members of some credit unions have had difficulty withdrawing their savings. Some who travel from nearby villages into town are sometimes told to return after weeks because of the lack of money.

Cases of burglary in credit unions around town have rarely been open to public scrutiny as most of the barons who man them shield the information from the public.

Following news of growing liquidity problems in some of the credit unions, most of the officials The Post approached for comments kept sealed lips.