Bayport Financial Services has temporarily stopped giving loans to civil servants and other public service employees because the bankrupt PF government through PMEC has not been remitting their money for a period of 4 months now.

And the Credit Bureau Reference (CBR) has blacklisted civil servants due to the bankrupt PF government’s failure to remit funds on behalf of civil servants who have borrowed from commercial banks and other lending institutions despite recoveries made from the said employees, since November 2018.

PMEC is a system where civil servants and other public service employees get things on credit from various suppliers then government deducts money from the employees on their payrolls and remits the deducted funds to the various suppliers.

But what has been happening is that government deducts money from civil servants salaries but does not remit to the suppliers making it look like civil servants are defaulting.

The same thing is happening with Bayport Financial Services, popularly Known as ‘Uncle Bayport’ by many civil servants, the lending institution that has proved to be the best money lender in Zambia.

While government deducts money from civil servants and other public service employees who would have borrowed from Bayport Financial Services, they do not remit the money to Bayport making civil servants default on their loans.

What’s even worse is that Bayport equally gets credit facilities from international lending institutions which they are obliged to pay back but with government failing to remit, it affects them as well.

On the Credit Bureau Reference, it’s illegal in Zambia to commit financial transactions such as a DIDACC or a issue a cheque that bounces.

But now since civil servants salaries are delayed and government does not remit monies to the various lending institutions and suppliers where civil servants borrow money or get items, the financial systems is recording them as defaulting.

It’s like someone issues a post dated cheque on the assumption that they will have money on a particular date only for the money not to be credited into the account making the cheque payment bounce, which is illegal in Zambia.

This situation has affected all categories of civil servants and other public service employees including the military personnel who relay on borrowing money from Bayport and other small lending institutions to sort out small bills such as school fees and medical bills for their families.

Civil servants also mainly survive on getting items from some shops on credit and recoveries are made from their payrolls through PMEC which should automatically remit the monies to the shop owners, but PF does not remit the monies.



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