CRDB officials get legal training to sharpen loan recovery skills

Lushoto. The Institute of Judicial Administration (IJA) Lushoto has launched a specialised training programme for CRDB Bank officials to strengthen their legal understanding and equip them to address challenges that frequently arise during loan recovery.

The three-day training, which began yesterday, at the IJA campus in Lushoto, seeks to help bank officials navigate legal procedures and minimise disputes that often hinder financial institutions in recovering loans.

One of the facilitators, High Court Judge (Commercial Division) Dr Cleophace Morris, highlighted several factors that contribute to legal disputes in loan recovery, including weaknesses in loan application processes, poor contract preparation, and a lack of integrity among some professionals involved in property valuation.

“Some valuation reports are prepared without adhering to legal and professional standards, which results in borrowers’ assets being sold below their actual value or portraying loans as unpayable,” said Dr Morris.

He further explained that many cases brought before the courts stem from poorly drafted contracts that are unclear to borrowers, leading them to assume rights that either do not exist or are not granted to the extent they expect.

“When loans are issued in compliance with legal principles, ethics, and integrity, the banking sector becomes more commercially productive instead of being a source of disputes and court battles,” he added.

Opening the training, IJA Deputy Principal for Planning, Finance and Administration, Prof Fatihiya Massawe, said the programme aims to strengthen participants’ ability to manage loan-related matters effectively and reduce the number of cases reaching the courts.

“I believe this training will enhance your capacity to address legal challenges in loan management and consequently reduce, if not eliminate, cases related to the financial sector,” said Prof Massawe.

She added that the initiative is particularly timely for CRDB Bank, which is expanding internationally and therefore requires a deeper understanding of both national and international legal frameworks governing loan administration.

“As CRDB continues to expand globally, the risks it faces also increase. It is therefore essential to build the capacity of our staff to ensure they have a comprehensive understanding of laws that will enable them to manage such risks effectively,” she noted.

One of the participants, Ms Lilian Mboya from CRDB Bank’s Legal Unit, expressed optimism that the training would strengthen her competence in contract management and help address legal disputes that arise during loan recovery.

She also commended IJA for organising the programme, describing it as a vital step towards enhancing professionalism in the banking sector and addressing the challenge of non-performing loans.