Former civil servants to lose vehicles over loan default

More than 50 former civil servants who had entered into the government facilitated vehicle co-ownership programme but left public service before tfour years, have been ordered to repay the money or risk losing their vehicles. They had up to yesterday to abide by the directive.The defaulters could not be named as the list was still being sorted.“We cannot name them now. It’s too early. We are still sorting the list. We have involved police for overdue cases,” Innocent Kabogoza, in charge of the government fleet told The New Times, adding that new cases were gradually cropping up. According to Kabogoza, any civil servant who voluntarily or involuntarily left government service before working 48 months after obtaining a duty free vehicle under the scheme, is liable to pay 50 per cent of the government contribution, but the amount will be computed basing on the remaining months. This is on top of servicing the 50 per cent loan directly in their respective banks.He further explained that for any indiscipline-related departure, the defaulter would have to pay taxes and duties incurred on the vehicle by government for the remaining months the civil servant fails to work for the government on a prorate (proportionate/breakdown) basis.Kabogoza was, however, tight-lipped on the number of those who left service owing to indiscipline.“The government cannot lose when someone falls short of expectations. It will have contributed 80 percent of the loan repayment depending on the rank when one is still in active service. The problem is only when you leave,” explained the official.The repayment for the 50 percent loan on a vehicle for civil servants who lose or leave government jobs is done within six months of leaving the job. In order to minimise expenses on government vehicles and motivate civil servants, the government initiated the vehicle co-ownership programme.Under the arrangement, ministers and their equivalent receive vehicles worth Rwf35 million. The government pays 50 per cent and secures a loan for the civil servant. The remaining 50 per cent is serviced by the civil servant. They also receive lump sum payments for the vehicle maintenance of 75 per cent based on the cost of the vehicle and 80 per cent of the loan including the bank interest depending on rank.Permanent Secretaries receive vehicles worth Rwf25 million while Director Generals are given vehicles worth Rwf18 million.

National

Former civil servants to lose vehicles over loan default