Loan issue gets diplomatic

6 March 2011 07:30 pm Views - 7895

By Kelum Bandara

Non-repayment of loans taken from the State Bank of India by teachers and principals would be brought to the notice of the President unless settled by March 15, Assistant Indian High Commissioner R.K. Misra had warned the Central Province Chief Minister.

Teachers said that this was an overstepping of diplomatic mandate by Indian authorities.
General Secretary of the Ceylon Teachers Services Union Mahinda Jayasignhe said that diplomatic intervention was totally unnecessary in such banking transactions.

“That is up to the bank and its customers to deal with. There is a mechanism for that,” he said.   

According to the letter sent by Mr. Misra to Central Province Chief Minister Sarath Ekanayake, the Bank had informed the Assistant High Commission of India in Kandy about the defaulting of loans by the   principals and teachers in three schools in the province.

Loans had been sanctioned by the bank’s branch in Kandy during the period between 2006 and 2008 for teachers and principals of 30 schools to be recovered directly from their salaries.

There had also been a condition that these salaries should be deposited with the Bank. 
However, the Assistant High Commissioner informed the Chief Minister that these teachers and principals concerned had not adhered to these conditions.

The names of schools and their principals who have allegedly dodged the repayment of their loans have been mentioned in the letter. Also, the name of another principal who has recently settled the loan after defaulting for over a year has also been brought to the notice of the Chief Minister.

“It is also understood that the principals of these schools are instigating other teachers also not to repay the loan. They have misbehaved with the recovery officer of the bank, who is a retired colonel of Sri Lankan Army, mentioning that they have political connection and nothing would happen to them if they do not repay the loan,” Mr. Misra had said in writing.

The loan had been sanctioned for 600 teachers of 30 schools. It has now been suspended because of this issue. 
While requesting the Chief Minister to instruct school authorities to settle these loans, Mr. Misra has vowed to take up the issue with the President otherwise. Also, he has copied his letter to Central Province Governor Tikiri Kobbekaduwa and the Deputy High Commissioner of India in Colombo.  

The State Bank of India recently opened up another branch in Jaffna where they have a consul general’s office.