Tomorrow 14th September we will observe Honorable Chief Advisor of Govt of People Republic of Bangladesh Dr Yunus to inaugurate PKSF Bhavan 2. Its a moment of joy for us as PKSF facilitatting around 300 local NGO MFI s with micro finnance plus mostly with health, education, disaster response and technology for income generating activities.

Mostly as because of subsidized loan this NGO MFIs are financialy sustainable, ie, not depenedent on donor money, allthough they do projects with donor money on vaiours issues. Now a days NGO MFIs are progressivly regulated by Microcredit Regulatory Authority.

Dr Yunus is a personality behind the esthablishement of PKSF. There are one issue which I feel that have to be solve in preparing new law or revising existing related laws. Non Performing Loan (NPL) is now a days well known to us, especially which is highest in Bangladesh in South Asia. We know why it has happened as because of bad governance in banking sector.

I am affraid that it may happen in micro credit sector too, as there are misappropiation by some staff and also by group members. Such a misappropiation is not happeniing in branch level but it is happening in group level, while field staff / credit officers are responsibile for collecting the money and deposting it in branch offices.

Most of the field staff of NGO MFIs are jobless HSC passed boys and girls of the locality, may be first time in life most of them handle lakhs of money in field, some of them hardly able to restrain themselevs in misappropiation. Some of the group members are also helping them in misappropiation.

Now a days, a group meeting hardly happened as poor people are busy and the field staff / credit officer go home to home meet them in person and collect money, so group collatoral hardly working.

In course of time such misappropiation unertheed through audit, NGO MFIs has to lodge cases against these boys and girles some time against their gurdians. In general, judges / court found sympatahize to the NGO MFIs and try best to recover the misappropiated money. But for solving these, it takes years after years.

So, as a small practiioner of credit rights to the poor people and I consider these NGO MFI money as public money (please note that around 30 to 35% of revolving credit fund of NGO

MFIs are group member savings), there should be speedy trial process of those miappropiated money and need to take legal action against those corrupted staff. So that there will be little of NPL in micro credit sector.

We request Dr Yunus goverment to take steps to make the legal arrangement for speedy trial inrespect of misappropiation of NGO MFI money and corrupted staff.