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Teachers, Post Bank lock horns over loans

By Vision Reporter

Added 1st August 2009 03:00 AM

TWENTY primary school headteachers in Masindi are locked in a disagreement with Post Bank Uganda over alleged breach of contract by the bank.

TWENTY primary school headteachers in Masindi are locked in a disagreement with Post Bank Uganda over alleged breach of contract by the bank.

By Lydia Namubiru

TWENTY primary school headteachers in Masindi are locked in a disagreement with Post Bank Uganda over alleged breach of contract by the bank.

The teachers have petitioned the Masindi chief administrative officer, saying Post Bank is making excessive deductions from their salaries to recover loans extended to them in 2006.

In April 2006, the teachers took loans of sh2.5m from Post Bank, to be paid in monthly installments of sh107,000 over three years ending April 2009.

Both parties agreed that the money would be deducted from the teachers’ salaries by the Bank of Uganda, through which public servants are paid. The central bank would then remit the money to Post Bank.

The teachers claim that since November 2008, Post Bank started deducting the money directly from their personal accounts. This has resulted into double deductions, since the central bank is still deducting the repayment amounts as earlier agreed.

“The bank has been using my salary balance to recover the loan, leaving me with nothing to run my family,” said one teacher.

“Headteachers are no longer executing their duties properly. There are out there looking for money to feed their families,” said Kasimu Ssembuga, the chairman of the Masindi Headteachers Association.

A primary school headteacher earns shs300,000 a month. With double deductions, the affected teachers are taking home sh86,000 for a month’s work.

To compound the issue, the bank allegedly continued to deduct loan repayments three months after the agreed repayment period expired.

Teachers, Post Bank lock horns over loans

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