Section 34: Regulations

PART VU. MISCELLANEOUS PROVISIONS SrcNpo this 6th doy of December 2021 No.8 DR. JULIUS MAADA BIO, President. z02L The Sierra Leone Students' Loan Schem e Act 2021 Short title' Being an Act to establish the Sierra Leone Students' Loan Scheme, to provide financial assistance to students of tertiary institutions in Sierra Leone as a means of facilitating increased enrolment into higher education and promoting the right to education for all Sierra Leoneans and to provide for other related matters ] Date of commencement. ENacrro6y the President and Members ofParliament in this present Parliament assembled. t t @ 2 No' 8 The SietaleonestudentsLoanschemeFund Act 2021 PARTI-PRELIMINARY 1. Interpretation. In this Act, uUless the context otherwiSe requires - "accredited institution" includes tertiary institutions accredited by the Tertiary Education Commission; "Board of Trustees" means the governing body of the Scheme established under section 2; "borrower" meau; a student who lends money from the scheme; "eligible sffinf'means a student who is a citizen of Sierra -I-rtone pursuing accredited tertiary programnies in an accredited tertiary institution, entitled or qualified for a loan under this Act; "employef includes an individual, a body corporate, a body ofpersons that is not a body corporate , an uguarartor" means a person who is meaningfully or gainfully employed or has the capacity to provide coilateral engagement to pay for debt/default/ miscarriage of a borrower. "institution" means, licenced body, a registered professional body and any other body or organization that employs a borrower and from which information in respect of a borrower may be obtained; "Fund" means the Sierra Leone Students' Loan Scheme Fund established under section 2; "Minister" means the Mini,ster responsible for Technical and Higher Education; "Scheme" means the Sierra Leone Students' Loan Scheme to finance loans to students for personal expenses under section 2; "scholarship" includes a bursary, award or grant; Na 8 The Siena Leone Students Loan Schene Fund Act Z0Zl 3 "Tertiary Education Commission , means the Tertiary Education Commission established under section 2 of the Tertiary Education C,onmissionAc! 2001 (Act No 8 of 2001); "tertiary educational institution, means'an institution, including a university, university college, polytechnic, aaining college or technical institute that provides post-seeondary school education through courses of instruction leading to the granting ofcertificates, diplomas or degrees. PARTtr.ESTABLISHMENT OF THE SIERRA LEONE STUDENTS' LOAN SCI{EME FUND. . 2. There is hereby established the Sierra Leone Studenls' Loan Estsbtishmcnt Scheme Fund vihich shall be used to finance loans to students for oi stua*ts' personal expenses, including fees, cost ofboarding or lodging, books, Loan Schcme equipment and other purposes that may be necessary for itudens IUd rmder the Siera Leone Studonts' Loan Scheme. 3. (1) The Fund shall be a body corporate having perpetual The Fund succession and capable of acquiring, holding and dispoiing of any ana is property, whether movable or irnmovable, of enteri.ns into conuaat conrnon and ofsuing and being sued in its corporate name and-subject to this sd Act, of performing all such acts as bodies corporate miy by law perform. PARIM-TI{E SIERRA LEONE STUDENTS' I,OAN SCHEME FUND BOARD OF TRUSTEES. (2) The Fund shall have a common seal, the use ofwhich shall be authenticated by the signaOres of the (a) the Chairman or other member authorised either generally or specially by the Board in that bchalf; (b) the Chief Executive Officer or some other person authorised by the Board in that behalf; ot 1 No 8 The Sierra Leone Students Lodnsch.me Fund Act 2021 Composition of thc Eoard of Trustecs. (c) anv two of its members authorised by ' ' re;lution ofthe Board to act in that behalf. 4. (1) The Goveming Body ofthe Fund shall be a Board of trustees in which sha[ be vested the Sierra Leone Students' [,oan Scheme Fund. @) Subject to this Act, the Board shall have contol and supervision of the Fund 5. 0) The Board of Trustees shall consist of a Chairrnan and tbe following other members- (a) one representative each, not below the rank ' of Director, from the following Ministries, Deparhaents and Agencies- (f the Minisry. of Te chnical and Higher Education; (if the MinistrY of Iabour; 0D the National Social Security and Insurance Trusq (i9 xhe Tertiary Education Commission; (v) the Ministry of Financ€; (vf the National Youth Service (vii) the Conference ofVice Chancellors and Principles (b) one representative of Students' Union of Tertiary Institutions, nominated on a rotational basis for a term of I year only; one investment and financial management specialist nominated by the Minister; and (c) Board of Truttees. (2) The Chairman atrd non-statutory members representing €ch ofthe Regions as may be established by Parliament at least tbree (3) ofwhom shall be women ofthe Board of Trustees shall be appointed by the President on the recommendation of the Minister subj€ct to the approval ofParliament (c) institute eBpropriate management and reportrng procedures to ensure accountability of the Scheme; 6. . Nonvitlstanding the generality ofsection (4), the Board of Functions of TrusteeS strall be responsibte !o- H:H: " (a) provide such policy guidance aad advice as may be requfued to ensure the efficient implementation and enhance the overall perfomrance of the Scheme; (b) monitor and evaluate the operatiors and perfonnance of the Scheme; (d) the Chief Executive Officer, who shall be secretary to the Board ofTrustees. (d) establish effective and efficient processes and procedures for the disbursement of loans and recovery of loans; (e) provide guidelines that will ensure fairn€ss in the disbursement of loans and the application of the Scheme; (0 determine - (f the terms under which money from the Scheme will be allocaJed to eligible students; (ii) the maximum amount ofmoney thatmay be granted to an applicant under the Scheme; NG 8 The Sierra Leone Students Loanscheme Fund Act 2021 I 6 Nc 8 Tha Sierre laone Stu&nts Loon Scheme Fund Act 2AZl Meetings of Boald of Trustees. (iD rhe method and tyPs of investrnent of firnds ofthe Schemei and (g) perform any other functions that are - incidental to the achievement of the object of the Scheme. 7. (l) The Board ofTrustees shall meet at least once every 3 montbs ior the dispatch of$usiness at a time and place determined bythe Chairman (2) The Chainnan shall al the request in writing ofnot less than one-third of the membership of the Board of Trustees convene an extaordinary meeting ofthe Board ofTrustees. (3) The quorum at a meeting of the Board of Trustees shall be 7. (4) The Chairman shall Preside at meetings ofthe Board of Trusteei and in his absence, a member ofthe Board ofTrustees elected by the members present from among their number shall preside. (5) Mauers before the Board ofTrustees shall be decided by a majoiity oftle members present by voting ani in the -event of an equality of votes, the Chairman or person presiding shall have a casting vote. 8. (1) A member ofthe Board ofTrust€es who has an interest, whether direct or indirect in any matter being considered or to be considered by the Board ofTrustees, shall disclose the nature of his interestto fhe Board of Trustees a,I1d the disclosure shall be recorded in the minutes ofthe Board of Trustees and such member shall not take part in any detberation or deoision of the Board of Trustees relating to that mafer. (2) A member of Board of Truslees who contravenes subsection (1) shall be guilty of misconduct and shall be removed from the Board ofTrustees. Disclosure of intcrest. No 8 Tle Sierra laota Saldents Loqa Scheme Fund Act 2OZl @) A member of the Board of Trustees shall not be personally liable for any debt or obligation ofthe Board ofTrustees. PARTry_ADMINISTRATION OF THE SIERRA LEONE STUDENTS, IrA4 SCr{EME FUND. @) The Chief Executive Officer shall be answerable to the Board of Trustees and shall be responsible for - (a) the day to day administration ofthe affairs of the Scheme; @) any other firnctions determined bythe Board of Trustees; (c) serve as secretary to the Board without ' voting rights. 9. (l) Action or other proceedings shall not lie or be tmmuoity of instituted agahst a member of the Board ofTnrstees in respect of membcrs. any act or thing done in good faith or omitted to be done in the exercise ofhis fi.rnctions under this Act. 'l 10. The Chairman and the other members of the Board of Renuneraliotr Trustees ghall be paid such r€muneration, fees or allorvance5 of members. approvef 6y the Mhister and shall be reimbursed by the Board of Trustees for expenses incurred in connection with the discharge of their functions as the Board ofTrustees may, with the approval ofthe Ministet deterrnine. 11. The Chairman and members appointed under section 5 shall Tenu.e of hold office for a period of three (3) yea$ and shall be eligible for Board of reappointraent foi another three (3) yiars only. - I rustees- 12. (l) The Scheme shall be administered by t}re Chief chief Executive Ofiicer who shall be appointed by the President on the Executivc recornmendation ofthe Minister, subject !o the approval of parliamenq ottloer. on such terms and conditions as may be specifled in the lener of appoinhent. No. 8 The Sierrq Leone Sadents Loan Schane Fund Act Z0Zl 13. Other staff. In the performance of its ftnctiotls under this Act' the ChiJ executive bfficer shall be supported by such otler staffas mav be necessary for the proper and offective performance of the -n-*o* oi tU. Sineme, incluilng a Finance Officer, Administrative 6mr"i, l"t".aa"ait* and other technical and administative staff' PART V- FINANCIAL PROYISIONS 14. (1) The fi:nds ofthe Fund shall consist of- (a) moneys appropriated by Parliament for the PurPoses of the Fund; (b) all moneys given to the Fund by way ofgits, endowments, bequest, grant or other contributions by persons and organisations for the PurPoses of the Fund; (c) revenue generated from the Scheme; (d) private investsnent and donations; (e) foreign aid and assistance from donor agencies; and (D all othermoneyswhiohmay, fromtime to time, arcrue to the Fund' (2) The firnds of the Fund shall be applied only for the purposes of the apProved budget of the Fund' 15. 0) The chiefExecutive Officer 5hall keep p.roper books of account'aad other reoords in relation to the activities, property anO finances oftfre Futrd in a form approved by the Auditor-General, and shall prcpare in resP€ct ofeach fiDarcial year, a financial statanent which shall iaclude- (a) balance sh€et accounts; (b) income and expenditure accounts; and (o) source and application of funds' Funds of thc Fuod. and oudit, No S Thz Sierra Leone Studerrts Loanscheme Fund Act 20Zl 9 (2) The accounts ofthe Fund kept under subsection (1) ' shall, not later tlan 2 months after the end ofeach fina:rcial year, be audited by the Auditor-General or an auditor appointed by hitrL (3) For the purposes of subsection (2), the Auditor- General or the auditor appointed by him shall be entitled to have access to all books ofaccount, vouchers and other financial records ofthe Fund and to require such information and explanation thereon as he may think fit. (4) The ChiefExecutive Officer shall provide theAudiior- General or the auditor appointed by him with all necessary and appropriate facilities for the examination ofthe accounts and records ofthe Fund. (5) The Auditor-General or the auditor appointed by him shall submit to the Fund a report on the audited accomb and the financial statements referred to in subsection (1) and shall, in his report draw attention to - (a) irregularilies in the accounts; O) matlerc thal are likely to adversely affect the operations ofthe Fund; and (c) any other matter which, in his opinion, ought to be brought to the notice ofthe Board of Trustees. 16. The financial year of ttre Fund shall be the same as the Finatrciat financial year of the Govemment, ,#.o, *u 17. (l) The Chief Executive Officer shall, through the Chairmaa, Board ofTrustees, submit to the Minister, within 3 months after the end of the financial year, a report on the performance ofthe Fund during that year. (2) Tle annual repon shall include the accounts and annual fiiancial Statement prepared under section 15 and the report ofthe audit thereon. Aflrual report of thc fund. l0 No. 8 The Sierra l*one Sludents Loan Scheme Fund Act 2021 Disbursement ftom Fund. (3) The Minister shall lay copies of the aruIual report before Pariia:nent wi&in 2 moDtbs after he has received tle report' f4) The Board ofTrustees stlall make copies ofthe report availabte to att stateholders once it has been laid before Parliarnent' PARTYI. OPERATION OF TI{E SIERRALEONE STUDENTS' LOANSCHEMEFUND 18. The Board ofTrustees shall authorise tle disbursement of loans-fiom the Fund by the Chief Bxecutive Officer, to finarte .r"*r*f f"* applications under this Ac! for students ?usuing accredited tertialy iourses or programmes in accredited teniary institutions. l9- (l) A Derson who wish to apply for a loan from the Fund "uuti- conlpiete'and submit to the Chief Executive oflicer' an uii'fi*tion'i, t*r, form as may be prescribed by the Board of Trustees. (2) On tIe receiDt ofan application under subsection (l)' the goard ii'trustees may conduct an investigation on the applicant "**".Jtt . uooti*t to submit such docunrent or other information ^ ii -co*ia".i i*essary for the determination of the application' 20. (l) Where the Board of Trustees makes a determination on an application for a loaq it shall - (a) grant the apPlicatioq ifit is satisfied that tbe '' ioplicani has fulfilled the requisite .iiaitiont, and fr:nds are available in the Fund to finance the couse or prografiune; or refuse to grant the request, where it iletermines that the applicant is ineligible for a loan under this Act. Application for loa[. Ll,sposal or applicatior. o) (2) An aDplicant dissatisfied with the decision of the Board of irustees tiider paragraph (b) of subsection ( I ) in respect of an application may appeal to the Minister for a reYiew of the decision'through an independent Appeal Committee' No. The Sierra Leoae Studen* Loan Scheme Fund Act 20218 1l 21. A person is not eligible for a loan under this Act Elisibiliry where, on admission into an accredited tertiary iustitution or during for loan. the course of shrdies in the institution, he obtains a Scholanhip or Grant-in -Aid &om the Goyemment or from a public or priva& flEded source. 22. 0) Atediary educational institution shall inform tl€ Fund Disctosure of of any scholarship made to a student in a tertiary institution in information Sierra Leone not later than one month after the award of the 3Jr,orur"hip. scholarship. @) The irformation to b€ provided under subsection (1) shal ias[uds the aame ofthe studen! the name ofthe institution and amount ofthe scholarship, awar4 bursary or granl (3) The Boad ofTrustees may issue a demand notice to a private or public entity to provide information on a scholarship, award bursary or grant made to a student in a tertiary instihrtion in Sierra Leone. 23 The Board ofTrusteestiha[ decide, suu5ect to this Acq- Conditions to be attached to loan. I (a) interest to be charged on loans; @) fees and charges for the processing of applications; (c) security or guarantee to be attached to a loan. 24. @ The Board of Trustees may, in writing, request Board may information- from a borower, guarantor or government €""", ii?IflLion.including information of- (a) name; .- (b) occupation; (c) residential and postal address; (d) work place and address; 12 No 8 The Sieta Leohe Studeats Loan Scheme Fund Act Z02l Bono\f,cr t o provide idormation (e) telephone nunber; (0 e-mail address; (g) national identifrcation number; (h) health insurance number; and (f Nalional Social Security and Insurance Trust nunber or any other recognised national pension scheme number. (2) tnformation requested by the Board of Trustees under subsiction (I) shall be provided not later than 30 days after receipt ofthe request in writing. 25. 0) A borrower shall notiry the Board of Trustees, in writing; ofa change of- (a) his residential, postal or busircss address and other contact (b) the name and business address of his €mployer or guarantor; and (c) his salarY and Particulars, that the Board ofTrustees may reasonably request at any tim€ until the loan is fullyrepaid. (2) Except where the borrower is self-employed, the borrower shall also notify the employer, in writing, ofarry obligation in respect of tle loan" 26. (1) An employer may employ a person wlo has had Tertiary Education in Sierra Leone but shall verifu whether- (a) is a borrower from tbe Fund; or (b) had made full re-palment oftbe loan. Einployer to d€duct poyment ftom salary Nq 8 fte Sierra liorle Students Loan Schzme Fund Act Z02l l3 , ^Q Notwithstan.{ing subsection (l), where an employer has lrooi that an employee has not flrlly repaid a loan from the Fundhe shatl make monthly deductions from the salary oftbe emolovee in accordance with the agreed monthly repuyroaot" b"t u""o iha'F-d aDd tne borrower and shall pay the deduction into the Fund not later than 15 days after the deduction. (3) An employer who makes montlly deductions from T",rulpy ot an €rnployee uDder subsecrion (2) but fails to pay the deductions into the Fund wir.hin the 15 days period, is liablj t6 pav intercst on the araount deducted at the prevaiiing iDlerest rate ptr;i percelt as penalty. 27. (l) Wherc a bonower defaults in repaying a loan for 3 Recovery consecutive months, the Board ofTrustees shall ieid n-otice to mate oi r*n. pal,rnent to the borrower or guarantor at their last loxown place of abode or address and publish twice in a wjdely circulated dailv newspaper and aay other media outlet. , ,g) Where the bgrrower or guaraltor fails to repay or maKe saustactory arraDgement to repay the loan after a notice to make payment under subsection (l) has been sent, the Board of Trustees slall publish the name ofthe borrower or tie guarantor in a widely circulated daily newspaper and any other media ;utlet statin; the amount olved and demand that the amormt owed should be pail within one month after the publicdiou. Failure !o do so is an admission of the debt ard it shau be deemed that judpent on the amou$ in additionlo costs of5 percent ofthe debt has-been entered by a Court against the borrower and guaranlor. (3) The Board ofTrustees shal! without firthernotic€ to the borrower or guarantor, proceed to exeaute or enforce thejudpent for recovery ofthe loaa or outstanding batance. _ 28. A torrower who repays a loan granted by the Board of certificate Tiustees uoder ttris Act, in firll, shall be isiued with a certificate of of paylllcnt. payment wiftiD 14 days after pa5,metrt and the cenificate shall be conclusive evidence of fl.rll payment ofthe loan. 29. .Wlerc a- person to whom a loan to pursue a progamme in Effect of an accredited tertiary institution, is granteO irnOer thii Ai, .. f,ffi* t4 No8 The Sierra Leone Studen s Loqn Scheme Fuad Act 2021 Studetrts' loan protection alrdngemcnt Submission of inco(ect information. (a) withdraws from the programme without reasonable excusel or @) is dismissed from the institution, he shall, notwithstanding not be absolved of his responsibility to pay the loan. 30. O) A borrower may subscribe to a students' loan ,r"ot""iiori irtuon"rent ttrat mai hdemnifi him ap1,o1ru**t ot iutstanaing aeUlto the Fund as a result of death or permanent disability. @ loan protection arratrgement under subsection (1), shall cover the duralion ofthe loan. PARTVtr. OFFENCES 31. (1) Aborrower, guarultor and employerlvho inte$o-f[J provides frtse information to scheme commir m offence and is liable 'oo conviction to a fiae not exceeding Le 20,000,000 or to term of imprisonment not exceeding two (2) years or to both fine and imprisonment (2) Any borrower who frils to comply wi$ the proltsigns contained in clausi 25 commits an offence and is liable on conviotion to a fine not exceeding Le 10,000,000 or to teml of impdsonment not exceeding two (2) years or to both fine and imprisonment (3) A T€rtiary Education Institutioa which fails to disclose iniormation or discloseses false information after the issuanc: ofa demand notice by the Board of Trustees under sectiou 22 commits an offence and is liable on conviction to a fme not exceeding L 20,000,000. 32, (1) Any borrower who frils to adequate arrangement after three (3) mbnths to iervice the loan after gainfirl employment or income seneratins activity commits an offence and is liable on convection to i fine not ixeedin! k 5,000,000 for undergraduate loan and a 6ne not exceeding k 10,000,000 forpostgraduate loan' Failure to r€pay Loan No 8 The SierraLeonestudentsLoanSchemeFund Act 2021 15 A) Employer who intentionaily fails to; (} deduct from source of an employee indebted to the scheme; (ri) or does, but fails to deposit loan :il*ffir, amount as specified in commits,a$offence and is liable on conviction to a fine not exceeding Le 20,000,000 or to a term of imprisonment not exceeding two (2) years or to both ftie and imprisonment. (3) There shall !s imFosed upon a borrower an interest not exceeding 0.02a/o of the agreed,monthly repayrnent cost as penalty for late payment. (4) Where a borrower defaults in repaying a loan for tiree (3) consecutive months, there shall be imposed a monthly interest of 0.02% and the guarantor shall be liable to pay both the interest and the principal to the fund. If the grhrantor, for another three (3) consecutive months fails to repay both the interest and principal, the collateral in place shall be disposed of to settle the amount payable to the fund. I 33. 0) A guarantor failing to provide &e right collateral or Defrauding of of meaningftl value with the intent to defraud the siheme commits the scheme. an offence and is liable on conviction to a fine not exceeding Le 3 0,000,000 or to a term of imprisonment not exceeding nro (2) years orto both fine and imFrisonmenL @ Any person; (i) with intent to defraud the fund by providing false information on or through other dubious means; (ir) aiding and abetting a borrowerl guarantor to defraud the loan scheme 16 Na 8 The SierrcLeorestudents LoanschemeFund Act 2t2l Regulations. commits on conviction is liable to a fine not exceedint Le 20,000,000 or to a term of imprisonment not exceeding two (2) years or to both fine and imprisonment. PART VIU. MISCELLANEOUS PROVISION 34. The Minister may, after consultation with the Board of Trustees, by statutory instrument, make Regulations as he considers necessary or expedient for giving effect to thisAcl Passed in Parliament this 2nd day of November, in the year of our Lord two thousand and TWenty One. PARAN UMAR TARAWAI,LY Clerk of Parliament. Trus Pnnrrro llpnessroN has been carefully compared by me with the Bitl which has passed Parliament and found by me to be a true and correct printed copy of the said Bill. PARAN UMAR TARAWALTY, Clerk of Parliament. Pnrvrep lNp PuBtisHso av rHB GovERNuBmr PnrNrwc Dtte*rMlNt, Strxre LeoNp. G,cziTTt No.79 oe 30rn DeceMsen, 2021.