20 Sep 2007

60,000 PNG public servants owe millions in high interest loans

3:32 pm on 20 September 2007

More than 60,000 Papua New Guinea public servants are reportedly living on so called borrowed money.

The Post Courier newspaper quotes government Chief Secretary Isaac Lupari as saying these public servants are paying 2.6 million US dollars in loan repayments every fortnight from the Government payroll.

They owe various finance companies 20 million US dollars.

Mr Lupari says that by November this year, Government department pay offices will no longer process loan repayments through the government payroll system.

He says public servants could still borrow money,as is their right, but they won't have their borrowings repaid through the government payroll.

Mr Lupari has told parliamentarians that 80 per cent of the 76,000 public servants survive on borrowed money and some are seriously in debt to companies charging high interest rates.

It is calculated that as a result of high loan repayments, the net pay some of government workers each fortnight is around 18 US dollars.