adminKudzanai Gerede
Youth, Indigenisation and Economic Empowerment Minister, Patrick Zhuwao has urged defaulters of the Youth Fund to make commitments towards settling debts with their respective financial institutions in order to unlock fresh capital for other youths yet to benefit from the facility.
Addressing Youths and stakeholders at the first National Economic Empowerment Conference held at the City Sports Centre in Harare last Thursday, the minister said currently there was a total of US$ 7 million locked up by CABS Holdings towards the youth facility but was not possible to access it due to non-performance of loans issued to the youths which has prompted the bank to cease further disbursement of loans.
Of the US$ 10 million which was set aside for the Youth Fund when it started, only US$ 4,9 million was disbursed by CABS Holdings before they stopped disbursement due to non-performance of the loans, and US$ 5,1 remains locked until defaulters are paid up.
According to CABS, since disbursing US$ 4,9 million to the youth facility, only US$ 1,7 million has been recovered to date, and the bank has since re-advanced US$ 1,7 from the performed loans back into the fund but only accessible when those defaulting on payment honor their obligations to the financial institution.
“The facility that CABS put in place was a facility of US$ 10 million, of that US$ 10 million, US$ 4,9 million was actually disbursed up until a point when some youths were not paying and CABS, as a proven financial institution, then stopped so to a certain extent there was US$ 5,1 million that was never disbursed so if we can get our young people to repay what we will then do is to get that US$ 5,1million unlocked.”
“So currently we’ve got $5,1 million plus $1,7 which then makes it about $7 million that has been locked up by those that are not paying back,” said Minister Zhuwao.
He urged defaulters to at least engage the financial institutions to come up with payment plans and warned those not showing any will to repay that the ministry will not stand in the way of the banks when they take the legal channels to recover the loans.
“The ministry organised and co-ordinated for this particular fund so the relationship is between the particular beneficiary and the financial institution, however in most cases the ministry also provided security for and on behalf of those recipients and that security represents public assets and resources.
“A number of financial institutions have been requesting me as a minister if I have any objections to them taking the normal processes they take to recover their money and I have said that those that have not paid back should at least engage with their financial institutions probably with some form of payment plan,” he said.
“Those that don’t even bother to make a payment plan, I think they are indicating that they don’t respect the financial institutions that provided money to them and more worrying that they don’t respect the government that provided security for them so in that respect I don’t see myself standing on the way of the banks taking the route of the law to recover their money. We need to unlock that money so that other young people can access it too”, he added.
The first National Economic Empowerment Conference was aimed at coming out with a sound youth empowerment strategy and to familiarize the youths and various youth organisation with the national youth and indigenisation policy.
The minister also said that the ministry would seriously enforce the contents of the document starting next year and top priority was creating working space for Zimbabwean youths in reserved sectors for locals particularly in the clothing and food retail sectors which has said has been dominated by foreigners.
He also said the US$ 2,5 million provided by the Finance and Economic Planning Minister Patrick Chinamasa in his 2016 National Budget will be channeled to the Youth Alumni Facility which will give loans to graduates from the National Youth Service and Vocational Training Centers across the country.
Online Reporter