A NEW legislation has been proposed by MPs to monitor the repayment of loans by expatriates, especially when they go on leave or are planning to leave the country for good.
The measure would see employers informing the Labour Market Regulatory Authority (LMRA) of any leave their expatriate employees are planning, the duration of the leave and the validity of their work permits.
The proposal also includes an option of making it mandatory on borrowers to obtain a letter of consent to travel abroad from their lenders.
The motion, by five MPs led by public utilities and environment affairs committee vice-chairman Ahmed Al Demistani, was submitted to Parliament chairwoman Fouzia Zainal yesterday.
It was referred electronically to the services committee to study ahead of the start of the third term in October.
Under the proposed legislation, deportation of expats convicted of crimes will have to be delayed until the loans are fully repaid, unless the expats’ diplomatic mission undertakes to repay the amount.
Similarly, expat workers who cancel their work permits, or retire, or whose contracts are terminated will be prohibited from leaving the country until they settle their debts.
Mr Al Demistani said expat workers should only be allowed to leave the country, temporarily or permanently, if there is a letter from the bank or commitment to repay by someone, even in the case of immediate deportation.
“There are cases where workers commit crimes to get deported as a way out of paying instalments; in such a case we want the verdict suspended until they pay up or someone agrees to do that for them,” he said.
“I don’t see any issue with the banks being able to provide a letter of consent, it could even be done online.
“The proposed legislation is just organisational and does not intend to restrict movement. The letter is an acknowledgement that the borrower is aware of his responsibility, while informing the LMRA in necessary in case Interpol needs to get involved to trace the borrower.”
The GDN reported in May that MPs were seeking urgent government clarification over the fate of hundreds of expatriate employees who have been left with debts following large-scale lay-offs due to Covid-19.
Parliament’s services committee had raised concerns that a large number of these migrant workers were unable to leave the country because they were unable to settle their bank loans.
The GDN reported that around 12,000 foreign workers have lost their jobs in March and April due to the pandemic.
“There have been cases where expat workers took huge loans from banks, financing companies or even individuals and then asked to go on temporary leave, or committed a crime to get deported, or saw their work permits terminated,” Ibrahim Al Nefaei, who is amongst the five MPs, told the GDN.
Migrant Workers Protection Society chairwoman Noora Feleyfel said the proposed legislation was organisational in nature, aimed at guaranteeing the rights of lenders and borrowers.
“However, if implemented, the mechanism should be flexible in which such letters would be issued.”
mohammed@gdn.com.bh
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