The Federal Government Staff Housing Loans Board (FGSHLB) has initiated a comprehensive process to identify and recover outstanding housing loan debts from retired civil servants. This action stems from a concerning number of retirees who have failed to fulfill their loan obligations after leaving public service. The Board’s Executive Secretary, Mrs. Salamatu Ahmed, announced the commencement of compiling a list of defaulting retirees, emphasizing the government’s resolve to reclaim mortgaged properties where necessary. This initiative aligns with the Public Service Rules and aims to ensure accountability and responsible financial management within the public sector.
The FGSHLB’s decision to pursue loan recovery is backed by a recent circular issued by the Permanent Secretary, Career Management Office, in the Office of the Head of the Civil Service of the Federation. The circular reinforces the mandatory requirement for retiring civil servants to obtain a Certificate of Non-Indebtedness from both the FGSHLB and the MDA Staff Multipurpose Cooperative Society. This certificate serves as proof that a retiring employee has settled all outstanding financial obligations, including housing loans, before leaving service. The Board’s current action underscores the importance of this requirement and signifies a firm stance against loan defaults.
Mrs. Ahmed highlighted the legal basis for the Board’s actions, citing the Public Service Rules 021002 (p), which explicitly mandates all public servants to obtain a Certificate of Non-Indebtedness as a prerequisite for retirement. This regulation provides the legal framework for the FGSHLB to pursue debt recovery through legal means, including the repossession of mortgaged properties. The Board’s commitment to enforcing this rule demonstrates its dedication to upholding financial integrity within the public service and ensuring the responsible use of government-provided housing loans.
The FGSHLB’s loan recovery efforts extend beyond retirees who recently left service. Mrs. Ahmed clarified that the directive also applies to retirees who have been out of service for some time but still have outstanding loan balances. This comprehensive approach aims to address all instances of loan defaults, regardless of when they occurred. The Board’s message to all affected retirees is clear: regularize your loan status and obtain the necessary clearance certificates to avoid further action, including potential legal proceedings and property repossession.
The Board has adopted a systematic approach to debt recovery. Mrs. Ahmed explained that the FGSHLB is actively compiling a list of defaulting retirees. This list will be forwarded to the relevant regulatory agencies to facilitate the debt recovery process. This inter-agency collaboration will strengthen the Board’s efforts and ensure a coordinated approach to recovering outstanding loans. By involving regulatory agencies, the FGSHLB demonstrates its commitment to utilizing all available resources to address this issue effectively.
Mrs. Ahmed reiterated the FGSHLB’s commitment to adhering to due process in all loan recovery actions. While the Board is determined to recover outstanding debts, it also recognizes the importance of fairness and adherence to legal procedures. This commitment to due process ensures that retirees are given the opportunity to address their loan status and avoid unnecessary hardship. The Board’s balanced approach aims to recover government funds while upholding the rights of retired civil servants. The initiative seeks to reinforce the principle of financial accountability within the public service and protect the integrity of government-backed loan programs.
