Editorial
The rush for rescheduling bank loans
It is the default culture that must be tackled headlong
A flurry of moves has of late been made by loan defaulting political individuals seeking election to qualify for nomination through a rescheduling of their bank loans by November 13. Many of them have already begun the process of repaying or rescheduling the payment of their loans, while others are getting ready to do the same.
We realise, of course, that the relaxed date for a rescheduling of bank loans has been set in order to facilitate a broad-based participation of candidates at the upcoming general election. It is indeed a matter of sorrow though that a culture has grown in the country where unless compulsion comes in, few loan takers are willing to cough up the money they have taken from banks in order to promote or develop their business interests.
Our pointer, therefore, is towards the default culture itself. It will be clear, if one goes through media reports in the last few days, that the amount of loans owed to the banks by former lawmakers and other politicians had reached staggering heights. Former Members of Parliament, belonging to all sides of the spectrum, have even had arrears pending against them in terms of unpaid telephone and other bills. It is indeed difficult to accept the idea that lawmakers, in fact politicians across the board, could so easily get away with everything they did. Even more amazing is the truth that many of the former lawmakers against whom there is a record of unreturned loans are individuals who have been sermonising to the country on the need for rule of law and good governance. Much as hypocrisy was at work, so was the incompetence or lack of integrity on the part of banks.
We think the time has come to separate out willful defaulters from the non-habitual ones on the basis of their track-records and if loans must be given to them, the manner of their recovery must follow standard rules that they cannot skirt around or override through using political influence or intimidation. The question is whether there is a guarantee that the portions of the loans that will remain pending will eventually be paid by these parliamentary aspirants. The latest loan reschedule bid clearly needs follow up action to ensure full repayment of loans.
One must not forget that a serious issue is involved here. And it is that we need to have in place a political culture which incorporates an abiding respect for financial and economic discipline, especially on the part of the lawmakers and other elected public representatives.
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