By Allieu Sahid Tunkara
A middle-aged woman and mother of three, Isha Bangura was briefly detained at Eastend Police station for Le7,000,000 equivalent to US$700, being an outstanding sum of a loan of Le 10,000,000 she got from BRAC, one of the money-lending institutions in Sierra Leone. Isha acquired the loan in December, last year, and she is supposed to pay back for a period of ten months with an interest of Le840, 000. This means, she pays back Le1, 000,000 monthly with an interest of Le84, 000.
In Sierra Leone, a huge number of women face a situation similar to that of Isha. They acquire loans from money lending institutions, but difficult for them to pay back.
The last resort for the money lenders is to take the defaulting debtors to the police stations to get back their money.
Isha’s mother, Maseray Bangura stood surety for her with a guarantee that she would pay back the money by monthly instalment.
Isha assures the police through her surety that complainant would get back her money. “I have been paying all along, and I will ensure that complainant’s get back her money,” she promised.
She said she was reported to the police because she failed to pay for this March.
Apart from paying back the loans, obtaining them is not an easy ride. Most times, officials of money-lending institutions collect bribes or kickbacks before issuing loans. “I bribe Le500, 000 to the official who gave me the loan,” Isha alleged.
A popular micro credit institution, A Call To Business (ACTB) has issued loans to over 800 women for this year expecting to get back the money within the stipulated time.
Hannah Bangura is the Relationship Manager of ACTB. She explains the criteria for accessing loans from her institution. “Any person who applies for loans from ACTB must have a registered business, open an account of 15% with the institution out of the loan and bring a guarantor,” Hannah said.
She also explains that her institution gives out loans between Le 1,000,000 and Le500, 000, 000 and that the amount of loan given to a debtor depends on the financial status of their business. “We cannot give you Le 10,000,000 as debt when your capital is Le5, 000, 000,” she said.
In almost all loans acquired from the money- lending institutions, substantial interest rates are paid by the debtors for a period of one year. “The interest rate paid on any loan is 36%,” she explains.
To ensure that women pay back loans at the right time, Hannah says, ACTB officials educate debtors about the process before loans are offered them. “The debtors are also given helpful advice with regards the nature of business to be embarked upon so that they can pay back the loans,” she stressed.
ACTB, according to Hannah, do not take police or court action in default of payment by any debtor although she cannot rule out an alternative detention system.
“We usually invite the defaulting debtors to our office and detain them for a short time so that their relatives can pay the debts for them,” she says.
However, the law prohibits any person to detain another without recourse to the criminal justice institutions. It is only the Sierra Leone Police legally mandated to detain persons who commit criminal offences, but not civil offences.
Detective Assistant Superintendent of Police, S.J. Kamanda is the Crime Officer at Eastend Police station situated at the heartland of Freetown. The police station is close to Abacha Street which hosts a great a number of traders from time immemorial. Little wonder that Eastend Police station receives the greatest number of micro-credit reports.
However, D/ASP S. J. Kamanda says he does not allow detention of people who borrow loans from micro-credit institutions. “Debts are civil offences. We do only police assistance by mediating such matters,” he said.
Most times, Kamanda said, where the lender and the debtor fail to agree on a loan settlement plan, the police normally advise the former to file a civil summon.
Joseph Dumbuya is the programmes Officer at Legal Aid Board Sierra Leone, an institution that provides free-of-charge representation for indigent citizens.
Dumbuya’s claim is contrary to the crime officer’s. “Legal Aid Board have represented most of the debtors charged to court by the police,” Dumbuya said. Most times, he went on, the police have relied on the Larceny Act of 1916 to charge debtors with offences of fraudulent conversion or obtaining money by false pretences.
“The police have no business charging the debtors to court. They should advise the lenders to file civil summon,” he asserted.
“Micro credits are civil matters. They are a product of civil transactions,” Dumbuya said.
The Legal Aid Board Programmes Manager says, sometimes, magistrates throw away such matters from the courts while others uphold the charges.
Dumbuya, however, alleged that the insistence of the police to charge such matters to court may not be unconnected to the kickbacks they get from the money lenders.
“Sometimes, a money-lender can give Le 2M to a police officer who help them get back the sum of Le5M or Le10M,” Dumbuya Said.
Dumbuya also explained that, most times, the women debtors are arrested without due respect for procedural correctness.
“The Sierra Leone Legal Aid Act, 2012 says when a police officer arrests any person who appears to be an indigent should contact Legal Aid Board, Sierra Leone,” Dumbuya explained.
He also states that his institution is overwhelmed with matters relating to debts. “Most times, Legal Aid Board mediates for an agreement plan between the money-lender and the debtor. But, we refer them to court if the mediation effort fails,” Dumbuya explains.
As women continue to be in detention for micro credit loans, Dumbuya says, his organisation is preparing to post paralegals in all police stations to reduce the rate of police interference.
ADVOCAID is a local non-governmental organisation that has been advocating the rights of women in conflict with the law. The organisation has three paralegals that monitor 15 police divisions in the Western Urban and Rural districts with the aim of helping women detained in police custody.
Sesay said ADVOCAID officials had been visiting police stations where they discovered a lot of micro-credit matters and freed a number of women in police custody including Eastend police stations.
An ADVOCAID official, George Sesay explained that a lady was recently detained for four days in police custody for failing to pay back a loan she got from a money-lending institution. His organisation, he said, came in on behalf of the lady for a compromise.
“ADVOCAID went into a payment plan with the money lender and the lady was released from police custody,” Sesay said.
The four-day detention period goes against the constitution of Sierra Leone which specifies three days in section 17(3) as the maximum detention period for any person who commits a minor offence.
Isha has paid Le3, 000,000 for three months and the sum of Le7, 000,000 is outstanding and should be paid within seven months.
By all indications, it is difficult, almost impossible, for Isha to pay back the loan in the face of a state of public emergency which has badly affected businesses.
The 800 women who have also taken loans from ACTB share a fate similar to Isha.