RORYA District Executive Director Abdul Mtaka has ordered institutions holding public servants’ bank cards as collateral for loans to stop the practice immediately, stating that it is illegal.

Mtaka issued the directive in Rorya yesterday during a visit by financial education expert team led by Salim Khalfan Kimaro, Financial Management Officer at Financial Sector Development Department of the Ministry of Finance. The team was in Rorya to provide financial literacy education.

He revealed that a taskforce has been set up to gather information on the practices and appropriate legal action will follow once the investigation is complete.

“Some public servants borrow from formal institutions like banks within the required salary deduction limits. However, others take additional loans from informal lenders that then seize their bank cards and demand PIN to access their salaries for loan repayment,” he said.

He said the practice prevents public servants from effectively managing their personal finances, affecting their productivity. He stressed that it is illegal for public servants to borrow beyond the legally established limits and equally unlawful for lenders to exploit this situation. He promised to take action once the taskforce concludes its investigation.

Mtaka reminded public servants that there are official guidelines governing borrowing, and any violations would lead to disciplinary action.

He also urged public servants who have taken loans without involving their employers or have borrowed beyond allowable limits to stop immediately as public service regulations prohibit excessive debt.

Mtaka called on financial education experts to help public servants and citizens adopt better financial management practices in their economic activities.

“Financial education should help citizens benefit from their income-generating activities. Public servants, farmers, traders, and fishermen should be taught how to manage their earnings effectively,” he said.

Kimaro assured Mtaka that his team would deliver high-quality training aligned with official guidelines to raise public awareness about proper financial management, promote economic growth, reduce poverty, and improve financial market efficiency.

The training would also cover the importance of using formal financial services to increase financial inclusion, protect consumer rights, encourage saving, manage loans and enhance financial security.

The financial education team conducted similar training sessions in other districts in Mara Region, namely Bunda, Musoma, Butiama, Serengeti and Tarime.