Industry bank threatens action against loan-defaulting bakers

The Bank of Industry (BOI) has promised to take action that would ensure the recovery of the loan given to Master and Caterers of Nigeria (AMBCN). The Regional Manager, North Central Region of the bank, Mr. Jack Kings, said this during a meeting held at Abuja.

He said that the challenge the BOI had was the non-payment of loan and issue of selling off the equipment given to AMBCN members on loan which they have been unable to pay back.

Kings said that those who had sold their equipment and were still owing the bank as their business were not doing well would be given payment elongation as they were permitted to reapply so as to able to attract the 50% reduction advantage already given to the equipment.

He added that no equipment was forced on anybody saying, “we have people that said ‘we do not need the equipment’, we did not force it on them, we looked for other bakeries that needed the equipment and we did a transfer and they have no issue with payment’’

He however appealed that those that were  owing to complete their documentation so as to enable them finalize the issue of working capital stressed that “Our interest is to see that the business succeeds.”

An Assistant Director, Federal Ministry of Agriculture and Rural Development (FMARD), Mr. Adeniran Bobby said that members of the association could no longer continue to fight themselves and hope that the industry grow adding that from all that was said, there were no fair representations and distributions of the equipment across geopolitical zones.

“I believe when things are done in the right way, the association will move forward; there is need for all members together to address the issue on ground and proffer  solutions,’’ he said.

Bobby said the association needed to review its constitution to address the problems it was facing. “There will also the need for auditing the account yearly, so that the issues of people moving money from the account without permission can be addressed. There is also need to do a wide consultation so that in the future no individual will be able to manipulate the activities of the association,’’ he said.

He advised that structure be put in place so that it would be difficult for individuals to steal, saying “when loans are being recovered, it would be easy for others to benefit.’’

Mr. Jude Okafor, the National Secretary of the association said that in 2015, about 5,000 bakers were to be trained and equipped. “By the end of August of 2015, we were told the money was for cassava bread.’’

He said the that mixer was given to them for N3.5 million and now the price had increased to N4.5 million, the oven was given for N7.5 million then and now the oven was being sold for 14 million.

Okafor said that the members were happy when the equipment was given to them, but it was unfortunate that some members sold their equipment. “And we are not happy with that because that was not what was signed for. “A member even sold the oven worth N13 million for N3 million because many of them thought it was free money and I had to go there to tell them that the money was not free and they must pay; that was what brought about the division in the association. I believe there is no justification to delay the payment for one minute, if the payment had continued, all other members would have benefited by now.’’

He however appealed to the ministry of agriculture and the bank of industry to waive the interests and help restructure the loan to enable the members pay up.

Okafor said that association was one and not factionalized, adding it was just the illegal activities of four members who failed in the election that some were referring to as faction.

He said that the association was aware of the dangers of allowing defeated contestants to derail the elected persons as it would set a bad precedence if they were recognized but that the Chairman of the Board of Trustee, other members and elders of the association have made efforts to reconcile the members to no avail.

Mr. Dominic Turi, the National President of the association said that there was procedure for sharing of all the equipment as 25 beneficiaries got for each geopolitical zone. “It was at the point of distribution that we noticed that some people do not have bakery to put the equipment, so we removed their names and that was part of the problem that brought about the division among us. We did not allocate the equipment to the bakeries, it was the ministry that did that after several meetings were held to determine who gets what according to their needs,’’ Turi said.