The Citizens Movement against Corruption has proposed transforming the Microfinance and Small Loans Center (MASLOC) into a digital lending platform.
MASLOC, established to provide swift, accessible micro and small loans to startups and small enterprises to bolster business growth and promote job and wealth creation, is under scrutiny following the sentencing of former MASLOC CEO, Sedina Tamakloe to a 10-year prison term for causing financial loss to the state.
This incident has sparked questions about MASLOC’s integrity.
In light of these developments, the co-chair of the Citizens Movement against Corruption, Edem Senanu, said the pitfalls of allowing organizational direction to be swayed by any political or external group must be stopped.
Speaking to JoyNews, Mr Senanu advocated for a restructuring of the leadership selection process within MASLOC, suggesting that key positions should be filled through a rigorous, independent screening process rather than political appointments.
This, he argues, is essential for maintaining the organization’s integrity and ensuring its effectiveness in serving the needs of small businesses and startups.
“But ultimately, the government ought not to be in the business of direct lending of funds to people; if at all, maybe MASLOC has to be converted into an organ that lends to other private sector entities that have a proven track record and expertise in doing this professionally with a good historical record of making profit over time.
“So, their portfolio is healthy, and they know what it takes to deal with the unhealthy part of their portfolio and get money back.”
Mr Senanu emphasised that, as a short-term measure, the government should prioritise appointing technocrats who possess the necessary expertise and remain uninfluenced by political affiliations, maintaining a distance from any partisan interests.
According to him, for the medium- to long-term strategy, the government should step back from directly issuing loans, but it should function as a facilitator for on-lending.
“We should not have the government directly involved in this kind of disbursement. They should be more of a lending entity, ensuring that they are giving money to other private sector entities that have the capacity to do so, and that would benefit Ghanaians as a whole.”
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