Cash loans cry foul
Microlender takes aim at association
Aiso Finance owner Frank Osaghae is concerned about how the Microlenders Association of Namibia management committee uses members' N$630 monthly fees.
A Windhoek-based microlender has accused the Microlenders Association of Namibia management committee members of racism for refusing black microlenders a chance to serve on the committee and of hiding its financial records.
Frank Osaghae, whose microlending business Aiso Finance is registered with the association, said black members are denied the right to serve on its management committee, while it hides how membership fees are used.
Members of the association are expected to cough up N$630 every month.
“I asked on several occasions what the membership fee is paid for, they only said it goes into the reserves and to fight legal matters. When I asked the board to help struggling microlenders, they said the organisation is not for gain,” he said.
“I also proposed that the executive committee be colour-balanced.”
Namibian Sun has spoken to two other microlenders – who chose to remain anonymous – who claim the association only benefits a handful of businesses.
According to Namibia Financial Institutions Supervisory Authority (Namfisa) statistics, the country had 360 registered microlenders at the end of 2021.
The Namibian reported last year that at the end of 2019, microlenders had 516 970 active loans with a combined value of N$6 billion. Many of these so-called 'loan sharks' charge interest rates of up to 30% on loans dished out.
‘Systematic corruption’
According to Osaghae, the association has a lot of money in its reserves from membership fees, but no accounts of these funds are given.
“I asked them who are we fighting legally and who are we paying for? White monopolists get remunerated under the guise that they are executives. I asked them what are they being paid for, what work do they do?”
He added that he is intent on opening a case with the Anti-Corruption Commission (ACC) about the management committee’s activities, saying there was a possibility that monies are used for self-gratification.
“I am concerned that there is systematic corruption. I am concerned that they are using our funds for their own interests. The chairman of the committee has the sole mandate to membership fees. In the event the organisation closes, the management committee has the right to disburse funds into an organisation that they have chosen.
“There is more than meets the eye here. I’ve written to the ACC,” Osaghae said.
Retract, or else
In a letter to the Aiso Finance owner - seen by Namibian Sun - the association’s lawyer Charles Visser of ENS Africa demanded that Osaghae retract the allegations.
“Our client demands a full and unconditional written retraction of the false, wrongful and defamatory statements.
“All our client’s rights remain expressly reserved, but not limited to the right of reply on such components of the statement and such other meanings, imputations, innuendos and stings,” the lawyer wrote.
Frank Osaghae, whose microlending business Aiso Finance is registered with the association, said black members are denied the right to serve on its management committee, while it hides how membership fees are used.
Members of the association are expected to cough up N$630 every month.
“I asked on several occasions what the membership fee is paid for, they only said it goes into the reserves and to fight legal matters. When I asked the board to help struggling microlenders, they said the organisation is not for gain,” he said.
“I also proposed that the executive committee be colour-balanced.”
Namibian Sun has spoken to two other microlenders – who chose to remain anonymous – who claim the association only benefits a handful of businesses.
According to Namibia Financial Institutions Supervisory Authority (Namfisa) statistics, the country had 360 registered microlenders at the end of 2021.
The Namibian reported last year that at the end of 2019, microlenders had 516 970 active loans with a combined value of N$6 billion. Many of these so-called 'loan sharks' charge interest rates of up to 30% on loans dished out.
‘Systematic corruption’
According to Osaghae, the association has a lot of money in its reserves from membership fees, but no accounts of these funds are given.
“I asked them who are we fighting legally and who are we paying for? White monopolists get remunerated under the guise that they are executives. I asked them what are they being paid for, what work do they do?”
He added that he is intent on opening a case with the Anti-Corruption Commission (ACC) about the management committee’s activities, saying there was a possibility that monies are used for self-gratification.
“I am concerned that there is systematic corruption. I am concerned that they are using our funds for their own interests. The chairman of the committee has the sole mandate to membership fees. In the event the organisation closes, the management committee has the right to disburse funds into an organisation that they have chosen.
“There is more than meets the eye here. I’ve written to the ACC,” Osaghae said.
Retract, or else
In a letter to the Aiso Finance owner - seen by Namibian Sun - the association’s lawyer Charles Visser of ENS Africa demanded that Osaghae retract the allegations.
“Our client demands a full and unconditional written retraction of the false, wrongful and defamatory statements.
“All our client’s rights remain expressly reserved, but not limited to the right of reply on such components of the statement and such other meanings, imputations, innuendos and stings,” the lawyer wrote.
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