adminZvamaida Murwira Senior Reporter
Government’s Youth Fund administered by some financial institutions suffered a high default rate and was riddled with cases of favouritism where beneficiaries were those that were connected, legislators heard yesterday.
The Ministry of Youth Development, Indigenisation and Empowerment set up a youth revolving fund that was administered by various financial institutions with Old Mutual administering the bulk of it to the tune of US$10 million through CABS.
Infrastructural Development Bank of Zimbabwe chief executive officer Mr Charles Chikaura told legislators that out of US$450 750 it distributed only US$197 391 was recovered. Mr Chikaura said this while giving oral evidence before a parliamentary portfolio committee on Youth Development, Indigenisation and Empowerment chaired by Gokwe Nembudziya MP, Cde Justice Mayor Wadyajena (Zanu-PF) who wanted to have an update of the fund. CABS chief executive officer, Mr Kevin Kerry said they had recorded a 70 percent default rate, but did not give enough details, a situation that triggered a reprimand from members of the committee. Members also expressed concern at the concentration of IDBZ loans on Mashonaland provinces at the expense of other provinces. There was also concern on the inconsistencies in distribution of funds by the financial institution where some projects got more than US$1 000 which was the threshold per project.
For example, it was not clear why Mr Ernest Kadungure of Chikomba district got a loan as high as US$30 000, but still failed to repay it.
Questions were also raised why Mr Tongai Kasukuwere got US$5 000 which again was not repaid. The committee said the non-performance of the loans could be attributed to the fact that they were given to relatives and friends of senior Government officials in a show of favouritism. But Mr Chikaura said Mr Kadungure’s project was a national one that benefited several youths. This prompted Cde Wadyajena to interject, asking how could a national project employ nine people.
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