BLESSINGS SIMWINGA
Kawambwa
KAWAMBWA Town Council secretary Andrew Bwali has expressed concern about the poor recovery rate of Constituency Development Fund (CDF) loans.
Mr Bwali said loan recovery under the CDF empowerment component has remained low due to delayed repayments and defaulting by some beneficiaries.
He said that out of the K5.1 million disbursed in Pambashe Constituency, only 13.52 percent of the amount has been recovered while 20.85 percent of K5.4 issued in Kawambwa Central Constituency has been recovered.
During the Fourth Ordinary Council meeting, Mr Bwali said CDF loans are a revolving fund meant to benefit citizens, but failure by beneficiaries to repay is negatively impacting the purpose of the programme.
“It is worrying that some beneficiaries are not honouring their loan agreements. This affects the Government’s intention of empowering more youths, women and cooperatives,” Mr Bwali said.
He said that despite sensitisation programmes and follow-ups by the council, CDF loan recovery rate has remained below expectations.
Mr Bwali implored beneficiaries of CDF loans to change their attitudes towards repayment.
“We have continued to appeal to all CDF loan beneficiaries to take responsibility and repay the funds to allow others in the community to benefit,” Mr Bwali said.
Council senior legal officer Vincent Mambilima said that demand letters have been issued against erring beneficiaries.
“Demand letters have been sent to the CDF beneficiaries. We hope this will trigger them to pay before we go further with court orders,” Mr Mambilima said.
