Exclusive: 54 microfinance-related suicides in AP, says SERP Report
- Friday, October 29, 2010, 2:47
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Microfinance Focus, Oct 28, 2010: Microfinance Focus has obtained a report prepared by the Gender Unit of SERP (Society for Elimination of Rural Poverty), listing the victims of microfinance institutions in Andhra Pradesh. Out of the 123 alleged cases of harassment that the report lists out, there are 54 death cases. According to the list, some of largest microfinance institutions are alleged in most of the cases.
Meanwhile, Mr. Alok Prasad, CEO of MFIN (Microfinance Institutions Network) told Microfinance Focus that MFIN is in the process of constituting a high powered team to look into the alleged suicides in AP. The intention is to have an independent investigation done so as to come to an objective determination of the true facts.
The list was prepared based on the information given by Task Force Committee – Gender Unit/SERP. Mr. Budhithi Rajshekhar, the CEO of SERP however declined to comment on the verification process and the methodology that was adopted to prepare the report. SERP is an autonomous society of the Department of Rural Development, Government of Andhra Pradesh.
In most of the suicide cases, the report claims that borrowers were subjected to unbearable harassment by MFIs, the report claims. Some examples:
K. Venkatalkshmi of Devarapalli, Visakha district, took a loan of Rs. 15000. “16 Years old daughter was harassed and humiliated, asked the girl to do prostitution for repayment, She was kept in a house under Lock, under wrongful confinement, and the girl Committed SUICIDE.”
Jayaramappa of Madakasira SC colony, Madaka sira mandal, Ananthapoor district, took Rs 64000 “from three MFIs. On 3rd of October 2010 committed suicide because of MFIs harassing his wife and abusing with filthy vulgar language.”
However, in a number of cases, there is no mention of harassment, beyond the report of the suicide and a loan amount. The document also refers to a handful of murder cases, with the implication that the debt played a role. For example, it alleges that Bollam Manjula, Dharmarao pet village, Warangal district, received Rs. 16000 loan, which “created feud in the family, between wife and husband about the repayment, with the unbearable harassment. Manjula committed suicide, but the case was treated as domestic violence.”
A handful of cases allege somewhat vaguely that MFI loan officers “abetted” suicide. However, one case alleges that the MFI actually encouraged the suicide. According to the report, Mr. Sale Ganesh of Sitharampoor, Rangareddy district, was subjected to “harassment and abetted commit suicide for getting insurance amount.”
A few cases of alleged harassment result in a natural death that brought on by said harassment. Mr. Jangam Kasipathi of Lachapet, Medak district, a client of several large MFIs, “due to the harassment of the employees of the Companies for repayment, insults and intimidation to the women in the family till midnight, could not take pressure of the MFIs, died with heart attack on the spot.”
While a number few of the suicide cases were reported by DRDA (District Rural Development Authority) itself, most of them were reported sourced from reports by the local media in the state.
Below report is published as is, without editing or verification by Microfinance Focus.
© 2010, Microfinance News. All rights reserved. 2008-09
8 Comments on “Exclusive: 54 microfinance-related suicides in AP, says SERP Report”
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Two of third suicide has been confirmed by staff in Asasah MFI. A swear pressure on the victims from management has reported by the ex staff of the MFI. It is needed to implement not only customer protection code but employee protection code also.
This is a good report. Interesting to see the perspectives.
Reality of Case No. 111: In one of the cases of suicide by the microfinance clients (Mrs Jafarbee) in Nagulati village, Kurnool District, we have experienced that media has gone overboard and created a story against microfinance. Mrs. Jafarbee who is also client of SMSS, committed suicide on 28 September 2010 and the same was informed to SMSS. One of our field staff, as per our policy, visited the deceased lady’s house and offered them funeral expenses on behalf of SMSS and write-off her loan outstanding . The family members were also informed that the lady is covered under insurance scheme and were asked to complete the required claim forms later. On the subsequent day a representative of one of the largest MFIs has visited the same house for repayment. As we understand that field officer has insisted on the scheduled repayment in spite of the situation. He was with held the case was escalated to village sarpanch who further reported to the police. Blindly, the police was pressurised by District Officials and they were registered case against all the Branch Staff of the MFIs working in that area including SMSS. The media rechristened the story as “suicide after MFIs harassment”.
Wrongly also reported by DRDA to Govt. that just entry of our staff caused sucide.
I am not sure what purpose that the loans are being given? Asset creation, livelihood finance not mF , poverty finance and all that semantic blah blah by the mFIs in great seminars in ***** stars with donors and development funding agencies is it just a eyewash !! The carpet bombing of loans is only done to just to keep mFis afloat ?? Why do these guys then sermonize and demonize govt work, they are worse off i Guess ?? , looks like they give a damn for the client ….God save . Thanks for providing this info !!
I am appaled at the alarming cases of sucide owing to the excesses by the MFIs. This is symptom of a gradually deteriorating social relationship and human greed.AP is one state which is a case in contrast-’perceived affluence’ and ‘misery’ of an unfathomably magnitude. MFIs are spreading fast in other part of the country.Let us think through the maladies rather comprehensively.
Media is just a munipulator of truth and all the big leagues are using it to there advantages,genocide like gujarath,kargil etc was left to god by media,they only mint TRP,money by sensationalism,after reading this article it made me so curious about MFI,social business and decided to visit a victim place which is near my residence and found its all misinterpretations by media,reasons are way beyond the normal avg camera man and journalist who were to report about the MFI operations,even after lots of non sense value created by politicians am sure the MFI as financial inclusion instrument will sustain in time to come..truth prevails in the end.
These all suicides are not forcible from MFIs, they some personal problems and health problems also. So media mentioned that they TRP ratiing MFIs suicides false report. Any body media people verified and confirm to these are MFIs related suicides? I think few are some MFIs non-registered comapnies operating village level, they will be forcible collected installments, then it happened suicides.