Namfisa warns illegal microlenders

THE Namibia Financial Supervisory Authority (Namfisa) is threatening to take legal action against Government employees who are running illegal microlending businesses.

Namfisa, the regulator of non-banking financial institutions, issued a statement on Thursday warning that it will take legal action in terms of the provisions of the Usury Act if it finds any Government employee running a microlending business. According to the Usury Act, any individual involved in this type of illicit businesses could be sentenced to a fine, a jail term or both.”Namfisa hereby notifies all employees of Government ministries, offices of Government, Government agencies and parastatals that any person who is not registered as a microlender in terms of the provisions of the Usury Act of 1968 is not authorised to operate, canvass for or solicit a microlending business,” warned Namfisa Acting Chief Executive Officer Lily Brandt.Brandt said it became necessary to issue the warning after the regulatory body was informed that employees of various Government offices and parastatals were involved in illegal microlending activities.Any person who grants a loan to a borrower against a charge of interest while not registered with Namfisa is deemed to be involved in illegal microlending.- NampaAccording to the Usury Act, any individual involved in this type of illicit businesses could be sentenced to a fine, a jail term or both.”Namfisa hereby notifies all employees of Government ministries, offices of Government, Government agencies and parastatals that any person who is not registered as a microlender in terms of the provisions of the Usury Act of 1968 is not authorised to operate, canvass for or solicit a microlending business,” warned Namfisa Acting Chief Executive Officer Lily Brandt.Brandt said it became necessary to issue the warning after the regulatory body was informed that employees of various Government offices and parastatals were involved in illegal microlending activities.Any person who grants a loan to a borrower against a charge of interest while not registered with Namfisa is deemed to be involved in illegal microlending.- Nampa