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NewsDay

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Shocking Cabs youth fund loan results

Business
IN what could be described as a shocking development, youths in Mashonaland East province who benefited from the Cabs youth loan scheme, have this year paid back only $1 523,36 of the $680 500 distributed to the province’s nine districts.

IN what could be described as a shocking development, youths in Mashonaland East province who benefited from the Cabs youth loan scheme, have this year paid back only $1 523,36 of the $680 500 distributed to the province’s nine districts.

BY JAIROS SAUNYAMA

Of the 456 loans disbursed, a whopping $678 976,67 is yet to be paid back to the detriment of other youths, who are on the waiting list.

According to a report in NewsDay’s possession, that was handed to Youth and Indigenisation minister Patrick Zhuwao when he attended a Zanu PF youth league rally in Marondera last week, two districts have not paid back even a cent since January this year.

The report said as of February 17, 2016, Goromonzi and Wedza districts, who owed the scheme $156 671,17 and $31 955,74, respectively, were yet to repay anything to the revolving fund.

Marondera District, which recorded the highest amount of $670,13 in repaying the loans, still owed $143 913,49 to the scheme, while second-placed Chivhu District only returned $287,78 of the $76 459,19 to be paid back to the scheme.

The $10 million Kurera-Ukondla Youth Fund was established in 2011, as part of Old Mutual’s indigenisation agreement with the government, in an effort to improve levels of employment and act as a stimulus for growth in the country.

Disbursing institutions say about 97% of the youths, who benefited from the fund, have not paid back.

Addressing youths at Mbuya Nehanda Hall in Marondera recently, Zhuwao pleaded with them to repay the loans.

“I understand that the youths here need loans to start projects as required by our indigenisation and empowerment exercise, but according to figures we have here, a huge sum of money is yet to be repaid,” he said.

“Those who are yet to repay the money should do so for the benefit of others. You cannot expect more money from government at this time.” Most of the youths advocated for the arrest of those defaulting on the loans repayments. Of the 60 loans disbursed in Murewa District, only $217,66 of $93 196,75 was repaid, while Seke District, who got 37 loans only repaid $240,84 of the $75 200,17. Mutoko District had this year repaid a paltry $56,95 of the $61 823,12 from 48 loans disbursed. Uzumba Maramba Pfungwe District, which got 36 loans, has only repaid a measly $50 of the $32 020,89 owed to the scheme.