Cross River Tackles Loan Defaulting Among Civil Servants With Strict Clearance Measures

The Cross River State Government is taking decisive action to address the persistent issue of loan defaulting among its civil servants. In a statement released Tuesday, Head of Service Orok Okon announced the introduction of stringent clearance measures designed to curb evasion tactics, such as switching salary accounts, which have been a significant concern for financial institutions operating within the state.

This new policy mandates that service providers must obtain formal clearance to verify the eligibility of civil servants before issuing any salary-linked loans. Furthermore, the names of loan beneficiaries will undergo a vetting process, and the Head of Service's office will cease processing unauthorized deductions. This move aims to instill greater financial discipline, safeguard the welfare of civil servants, and enhance transparency in all salary-related financial transactions.

“

We received complaints of unpaid loans and evasion of loan repayment by staff through switching of salary accounts.

Violations of these new regulations by civil servants, payroll officers, or financial institutions will not be taken lightly. Sanctions, including blacklisting from future engagements, will be imposed. The government's commitment to financial integrity is clear, ensuring that public funds and financial services are managed responsibly.

“

Civil servants will not be allowed to change salary pay points without formal approval through their ministries, departments, and agencies.