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The bank was given the responsibility to disburse loans to under-capitalised firms nine months ago under the Distressed Industries and Marginalised Areas Fund (Dimaf). The funding facility is a joint venture between the bank, the Government and the Old Mutual.
In a statement CABS said it had only received 49 applications with 10 having been approved since the launch of the fund.
“CABS in conjunction with Old Mutual Zimbabwe and the Government of Zimbabwe is proud to announce that it has started disbursement of funds to beneficiaries,” read the statement.
“Following its launch, the fund has disbursed over $3 million to local companies to enhance their output. The funding will allow companies to purchase equipment and raw materials for use in enhancing their output and quality of goods and to assist them in meeting their operational costs.”
According to the statement, the bank has approved applications from 10 companies drawn from five areas, Bulawayo, Victoria Falls, Harare, Goromonzi and Marondera.
A total of $3 963 750 funding has been approved with $3 128 750 having been disbursed. Pending disbursements add up to $835 000.
On the other hand, Industry and Commerce Minister Professor Welshman Ncube said the Government forwarded more than 60 names for consideration.
He blasted the bank and accused it of refusing to cooperate with the Government.
“There is nothing for Bulawayo companies in the first $3 million they have disbursed so far. The bank did not consult us and continue to refuse that the first $40 million under that fund is for Bulawayo. They do not want to accept Cabinet decision,” said Prof Ncube.
“From their statement it means they are still where they were. It means they are still holding onto the $10 million that was deposited by Government in April.”
Prof Ncube said his ministry submitted more than 60 applications to the bank as opposed to the 49 that the bank claims to have received.
Said Prof Ncube: “When we gave them applications from Bulawayo, they were not interested. They have no desire at all to cooperate with the Ministry of Industry and Commerce. We have an entity that was entrusted with Government money but is refusing to cooperate with the Government.
“The $3 million they are talking about was disbursed before 17 April. If it takes them over six months to disburse $3 million it means we will get to the end of 2013 when they have not even disbursed $12 million,” he said.
The minimum requirements for the fund, according CABS, include collateral, audited financial accounts for the past two years, projections for CAPEX loans covering the tenure of the loan, budgets and cash flows and turnaround strategies including a business plan.
Professionals are required to register with a recognised regulatory body and should have been in practice for at least five years.
Since its launch in October last year Dimaf has been embroiled in controversy amid deepening frustration by the business community.
Politicians from different parties have also traded accusations on the fund with some saying Dimaf has been politicised.
President Mugabe has also expressed concern over delays in the disbursement of the fund, which was meant to revive Bulawayo industries.
More than 85 companies have closed shop in Bulawayo with an estimated 20 000 workers losing their jobs.
Online Reporter