EMPLOYEES of the National Entrepreneurship Development Company Limited (NEDCO) are calling for an investigation into a scam at the Tunapuna office involving small business people who are not qualified to obtain loans.

Sources say the husband and son of a close relative of a People’s National Movement (PNM) politician were recently granted loans without the normal procedures being followed.

The son was granted $30,00, which was later questioned by NEDCO officials.

An investigation disclosed that there were discrepancies as to how the loan was disbursed. The scandal over the loan resulted in the senior officer being suspended and when she returned to work, two officials of the Human Resource Department tendered their resignations.

Employees say there was a “cover-up” in the investigation.

The relatives of two PNM politicians are working at the Arima and Tunapuna offices of NEDCO, sources say.

One NEDCO official told TnT Mirror that there is also a racket involving suppliers, like hardware dealers, supermarkets, wholesalers and other selected business places where those who are granted loans are asked to make their purchases.

The NEDCO official and her husband went to an Arima business place with a cheque for a purported small businessman, seeking to buy material on the condition that the firm would give her part of the money in cash.

The applicants, who want to set up small businesses are to obtain proforma invoices to certain business places of what stocks, equipment or material they need.

Loans are approved from $3,000 to $50,000.

After their loans are approved, a cheque is made out to the firms but they do not spend all the money and seek to get back part of the funds in cash, which is against the procedure.

One source said the NEDCO official gets a “kick-back” from these suppliers.

“It’s well-organised ring involved in the loans racket,” another worker said.

The NEDCO officer said applications at the Arima office are sent to the Tunapuna office to be processed.

In many cases when the loans are recommended at Arima, the Tunapuna office gives the approval.

A number of these questionable loans are not being repaid, the source said.