HESLB’s axe falls on Arusha employers over loan defaults

by Udahiliportal

A NUMBER of firms and institutions in Arusha are accused of failing to remit money they deduct from employees on behalf of the Higher Education Students’ Loans Board (HESLB).
Officials from board are currently visiting all firms whose employees acquired loans and the Loan Repayment Assistant Director, Mr Fidelis Joseph, said here that three Arusha employers owe HESLB nearly 600 million/- , being loans repayment from their workers, who secured assistance during their college and university days. According to Mr Joseph, many employers deduct money from their employees’ salaries for loans repayment, but do not remit the same to the board.
He added that from the 2nd of April 2018, all defaulters will be arrested and charged with failing to pay the money. “We are still visiting each and every employer in Arusha; the list is long and we first need to hear from them what exactly is wrong. After the exercise, we shall publish all names of the defaulters.
They have up to the end of this month to pay the sum, otherwise we shall start the first week of April with legal processes against them,” Mr Joseph maintained. “We talked to some of the loans beneficiaries who assured us that their companies, institutions and other employers were deducting money from monthly salaries, saying they were for the repayment of the loans, but were surprised to learn that the same amounts never got to the Loans’ Board,” Mr Joseph explained.
He described some of the defaulters as mining and minerals dealing organisations, private schools, colleges and banks. According to the HESLB officials, the tour also involves visiting firms that are doing well in repaying the loans to the Higher Education Loan Board, citing the Tanzania National Parks as a case example of faithful employers.
Mr Patrick Shoo, who is the Northern Zone’s HESLB Manager, covering Tanga, Arusha, Manyara and Kilimanjaro Regions said his offices have been serving the employers with demand notices and reminders since last August, but many were adamant

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