LUMEZI TOWN COUNCIL SUES 34 CDF LOAN DEFAULTERS OVER K1.4M ARREARS
LUMEZI, Saturday – The Lumezi Town Council has taken legal action against 34 Constituency Development Fund (CDF) loan defaulters, seeking to recover more than K1.4 million in arrears.
According to the Council, the beneficiaries, who accessed empowerment loans in 2022 and 2023, have defaulted on repayments amounting to K1,463,776.35. Some individuals reportedly owe as much as K90,000, with others having never made a single repayment since receiving the funds.
Council Assistant Public Relations Officer Irvin Muyumbwa confirmed that lawsuits have been filed before the Chipata Subordinate Court through the Local Authority’s Legal Services Unit.
The Council revealed that several efforts were made to engage the beneficiaries, including meetings and demand letters, but many still failed to respond.
Those sued have been given 15 days from the date of being served court summons to settle at least 75 percent of their arrears if they wish to avoid further court proceedings. Defaulters who fail to comply will face full trial.
The Council emphasized that the move serves as a warning to both current and future loan beneficiaries to honour their repayment obligations in order to sustain the government’s empowerment initiative under the CDF programme, which is designed to support SMEs with affordable credit.
You did not scan em, give them more time.
Indigo get real. These are public resources. Not your personal petty case. How long has the system been abused? There others who would benefit for the repayments through a revolving fund. Its being selfish to waste time with people who go loans knowing they could not pay back.
Just release their names to add value to your claim.
No CDF loans will be paid anywhere in Zambia. We have been there before. KK tried LIMA bank. All the money went down the drain. And we are repeating the same LIMA bank bonanza. Watch if any money will be paid back.
This is a blemish and stain to the leadership.
From Munri Zulu to the ward leadership.
When giving these loans, they know who they were giving. Did the applicants demonstrate the ability to pay back?
What systems have we put in place to ensure this cycle doesnt repeat itself?
If we serious about CDF envoke and fix the loop holes. Let society learn that financial responisibilty is an essential ingredient to success. For a long time we have allowed people to use public reasources to be abused for political milegage.
Zambia has stook still if not poorer. Abuse of public resources. We need to stop allowing this to be used as an excuse to enable criminals.