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18 students facing 148m/- loan case

12th February 2013
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Higher Education Students Loans Board (HESLB)

Eighteen students from higher learning institutions have found themselves facing charges of defaulting on their loan agreements, and required to pay the principal amount 135,132,275/- which was the loan granted to them to pursue a higher learning education and 13,513,227 as penalty.

 The Higher Education Student’s Loan Board (HESLB) filed the civil case against 18 students who were the beneficiaries of loans to pursue their higher education but have failed to repay. 

The students who received the loans between 1994 and 2009 to pursue their higher education, signed an agreement with government to refund the loan within a prescribed time but have failed to do so and the HESLB wants them to pay back sums exceeding 148m/-  

According to the Suit Civil case number 4 of 2013 filed at the Kisutu Resident Magistrate’s Court and assigned Magistrate Frank Moshi, the accused were to repay the loan as entrusted by section 6 (h) of the higher education students Board Act. Number 9 of 2004 that stipulates that the board is to administer, supervise and recover the loans issued by the government to since July 1994.

Under section 19 of the Higher education students loan Act and regulation 4 (y), every loan beneficiary is to pay back the loan to the government through the board in a timely fashion irrespective of their educational performance.

The defendants, it is reported, were reminded via mass news mediums of their due dates but failed to comply.

The plaintiff is calling for judgment and decree against the defendants by virtual of section 21 (1) of the Act that directs the defendants to pay the plaintiff the principle amount of loan and a penalty of ten percent of the total loan and to cover the court process. No mention was offered as to whether there would be interest to be paid.

The case waits for a date of arraignment. The defendants in the case are, Adamson Koresh, Ally Mwenda, Anna Lyimo, Asma Tullango, Catherine Muhina, Clement Kihamia, Doreen Lyatuu, Farida Zuku, Felix Mosha, Flora Peter, Frank Lugala, Harrieth Mazengo, Hapines Soria, Hillo Nyeme, Mwanahamis Abood, Ndabomeye Philipo, Ndeni Anande and Turphina Matereko.

SOURCE: THE GUARDIAN