07 Dec 2016

Satellite South ward councillor, Mr Godisang Radisigo has called on the Non-Bank Financial Institutions Authority (NBFIRA) to caution micro lenders against taking official documents from their clients.

Speaking in a meeting addressed by officials from NBFIRA on Tuesday (December 6), Mr Radisigo said micro lenders who take official documents such as Omang and ATM cards inconvenienced their clients as they could not access some services that required such.

He further said some insurance companies were not providing any cover to their clients after only defaulting in premiums for a month, despite that they had been paying premiums over a number of years.

He said there was the possibility that the Tati Nickel Mining Company (TNMC) employees could face some challenges should they want to claim from some insurance companies due to default in premiums for some months.

For his part, Monarch West councillor, Mr Godfrey Kaelo said some micro lenders had impoverished Batswana because of exorbitant interests.

Thus, he called on NBFIRA to consider regulating interests charged by micro lenders as a way of protecting Batswana from the loan sharks.

Donga Ward councillor, Mr Ben Mpotokwane complained of some insurance companies that failed to remind vehicle owners to value their cars yearly so that the premiums could decrease.

Councillor Andy Boatile, further raised a concern anout pawn shops that sell their clients’ property at a low value adding that customers should be allowed to sell their property for what they were worth.

Councillor Uyapo Nyeku of Phillip Matante East ward also  decried that in some instances, siblings insured their parents, but during the time of the death of the parent, only one would be allowed to make a claim.

For her part, FCC mayor, Ms Sylvia Muzila raised a concern about some pawn shops operating in residential places.

She suggested that since NBFIRA does not license pawn shops, but only regulate them, councils as licensing authorities should be allowed to license them.

She further called on NBFIRA to set an office in Francistown in order to serve the northern part of the country as Gaborone was far.

Earlier in his presentation, NBFIRA’s lending assistant analyst, Mr Eric Mogotsakgotla told the councillors that there were 308 registered micro lenders and 208 licensed ones. Mr Mogotsakgotla said close to 70 micro lenders were registered in Francistown.

He said some of the requirements of licensing micro lenders were that they should be registered with Company and Intellectual Property Authority (CIPA), they should have financial liquidity of P20 000 that should be maintained at all times, should register with BURS and pay P6 000 licensing fee.

Mr Mogotsakgotla explained that micro lenders should not be operated in handbags or residential areas. He further said metshelo (friendly societies) should only lend to its members.

He told the councillors that some of the challenges faced by NBFIRA with micro lenders were that some operate without licences, some repossess their clients’ official documents and some charge interest on interest, among others.

NBFIRA’s Insurance senior analyst, Mr Khumo Phatshwane said some insurance policies rely on premiums for their existence and if premiums were not paid for a certain period they cease to operate. He explained that previously some insurance companies did not allow claims for one person adding that however the ideal situation was for the other siblings to get their premiums back.

He further said each case was assessed on its own merits.

Mr Phatshwane said it was the obligation for vehicle owners to ensure that they value their vehicles yearly and inform the insurance companies about the value so that premiums were reduced.

He urged Batswana to desist from signing any documents without fully understanding the commitment they were getting themselves into. Mr Phatshwane observed that some Batswana still do not understand what insurance is and only perceived it as a saving mechanism hence a lot of complaints at NBFIRA.

Earlier, NBFIRA’s communications and public affairs manager, Mr Tapologo Kwapa informed the councillors on the authority’s mandate and that prior to its introduction the country experienced problems as some companies flew out the country with Batswana’s money.

While NBFIRA handled complaints regarding non-banking entities, he said complainants should first lodge their complaints and exhaust all channels before escalating to the authority.  He said they should also provide written proof of all their communication. ENDS