The Citizens Movement against Corruption has proposed a transformation of the Microfinance and Small Loans Center (MASLOC) into a digital lending platform.
MASLOC, originally established to provide fast and accessible micro and small loans to startups and small enterprises to enhance business growth and promote job and wealth creation, has come under scrutiny following the sentencing of former CEO Sedina Tamakloe to a 10-year prison term for causing financial loss to the state.
This development has raised concerns about MASLOC‘s credibility.
In response, co-chair of the Citizens Movement against Corruption, Edem Senanu, emphasized the importance of preventing organizational direction from being influenced by political or external groups.
Mr. Senanu advocated for a restructuring of the leadership selection process within MASLOC, proposing that key positions should be filled through a rigorous and independent screening process rather than political appointments.
He believes this is crucial for maintaining the organization’s integrity and ensuring its effectiveness in meeting 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 stressed the importance of appointing technocrats with the requisite expertise, unaffected by political affiliations, as a short-term measure. These individuals should maintain independence from partisan interests.
For the medium- to long-term strategy, he suggested that the government should refrain from directly issuing loans. Instead, it should serve 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.”