Skip to main content

Over 50,000 people still owe SSNIT



By: Fred Yaw Sarpong

The Social Security and National Insurance Trust (SSNIT) , which hitherto managed the SSNIT Students Loan Scheme set up to assist students in tertiary institutions to defray some personal and academic expenses while in school has said that as at the end of January 2014, about 58,557 students were still indebted to the Scheme.
This represents 30% of 192,746 students who owed the Scheme before it was replaced by the Students Loan Trust Fund (SLTF)  in 2006. This was made public by  Mrs Evangeline Amegashie,  Corporate Affairs Manager of  the Social Security and National Insurance Trust (SSNIT) .
In 2006, the Students Loan Trust Fund (SLTF) was set up by the Government as a permanent body to replace the SSNIT Students Loans Scheme. This meant that new applicants to the scheme from 2006 were serviced by the SLTF, and not SSNIT.After the cessation of the SSNIT Students Loan Scheme, continuing students under the SSNIT Scheme however continued to be paid till January 2012. 
In a phone conversation with Mrs  Amegashie, she  told the Daily Express    that SSNIT is recovering all loans it has issued to student from decades, before the SLTF took over.
 "This activity when carried out successfully will make more funds available to enable the trust fund invest the loan recoveries prudently to sustain the fund".
Approximately 134,189 persons representing 70% student’s loan beneficiaries have completely repaid their loans. 
According to SSNIT, " these loan repayments were made through a medley of the repayment options. The options were cash repayment, offset with social security contributions, deductions from beneficiary/guarantor benefits, mandating employer to deduct from salary, and refund from scholarship and bursaries."
It stated that in order to ensure that the loan borrowed from the workers’ contributions are incontrovertibly repaid, it was mandatory for each borrower (student) to provide three guarantors who were social security contributors and had been members of the Social Security Scheme (SSS) for not less than five years. 
It added that this obviously was to guarantee the repayment of the loan. That is, in the event that the student loan beneficiary is unable to repay the loan, the guarantorship clause would be invoked.  "So far, 137,437 guarantors have been released under this repayment exercise," SSNIT noted.
The Government of Ghana since independence made several attempts to establish a Students Loan Scheme.  For instance, in 1971 and in 1975, Student Loans systems were operated by the Government of Ghana but failed as a result of change in governments and a high default rate.
The SSNIT Students Loan Scheme was started in January 1988 and was administered by the Social Security and National Insurance Trust (SSNIT) on behalf of the Government of Ghana, under the Students Loan Scheme, (PNDC Law 276) of 1992.











Comments

Popular posts from this blog

Akuapem-Apirede to promote tourism

By: Fred Yaw Sarpong sarpong007@gmaail.com
The Chiefs and people of Akuapem-Apirede in the Okere Constituency of the Akuapem North Municipality have put in place strategic plans to promote tourist sites in the town.
Apiredehene, Nana Saforo Okoampah III told the Daily Express that their vision is to develop Apirede in a modern way.
“We want to have a modern society and environment. We are doing this on the basis of promoting tourism here,” he added.
According to the Apiredehene, it’s their plan to promote the historic sites and the geographical location of the community.
Apirede is one of the 17 towns that forms the Akuapem State and historically, it used to house the armours of the Akuapem State. The community is part of the Nifa division of Akuapem.
He stated that one of those things was called ‘Odosu’ (the war god for Okuapemhene). “The Chief Executioner in those days for Akuapem also came from Apirede and items that he used were also kept here,” he stated.
“These are a lot of things …

Ghana to benefit from oil spill fund

By: Fred Yaw Sarpong

Ghana as crude oil importing country will benefit from the International Oil Pollution Corporation Fund if the country witnesses oil spill at its ocean.

“The fund is a global fund and it’s meant for the countries that import crude oil. The fund is voluntary but Ghana through the Tema Oil Refinery (TOR) contributes annually on behalf of Ghana,” Mr. Kojo Agbenor Efunam, the Deputy Director in charge of oil and gas at the Environmental Protection Agency (EPA) told the Daily Express.

He explained that the fund is mostly for crude oil importing countries but not those into production and exportation.

Mr. Efunam further explained that once Ghana is part of the fund, anytime there is an oil spill involving an oil tanker on the seas of Ghana, the country can apply for the fund to solve any problem resulting from the spillage.

“If the incident does not involve a tanker the country does not benefit. But if the incident involves a tanker the country applies for the fund,” he ment…

PFM Act to guide local government authority borrowing

By: Fred Yaw Sarpong
The bill, Public Financial Management (PFM) Act 921 which has been passed into law by Parliament is to guide public institutions especially the local government authority borrowing. The law was pass on 3rdAugust, 2016
According to the law, local government authority, a public corporation or state-owned enterprise is liable for the debt and other obligations without recourse to Government, unless otherwise explicitly guaranteed by Government in accordance with this Act.
Madam Eva Esselba Mends, the Chief Economic Officer and Group Head of PFM at the Ministry of Finance told the Daily Express that the law involves a lot but it also give instruction to how state institutions can borrow especially with the  local government authority.
She mentioned that there is no specific law in place that gives direction as to what local authority can do when it comes to borrowing by the authority. Other public corporations sometimes borrow with huge amount for their operation but loca…