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Loan repayment for Bt vendors remain misty
By
Joseph Langa - 04-04-2002 |
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Uncertainty surrounds the repayment of a K10 million loan issued to vendors in the Blantyre City Assembly from a revolving fund introduced by the Ministry of Local Government last year.
Although repayment of the loan was scheduled to start in December last year, no vendor has paid the loan so far.
The loan, administered by a special committee comprising Blantyre City assembly, Ministry of Local Government and representatives of the vendors, was supposed to be repaid in six months’ time ending next month at 15 percent interest rate.
However, a month to go before the official closing time for the repayment period, the vendors continue refusing to start repaying the loan demanding more time until May.
Blantyre City Assembly and the Blantyre Vendors Committee confirmed in separate interview that repayment of the loan has not started.
Blantyre City Assembly Assistant Director for Administration Lickson Namakhwa said the vendors should make a decision when they want to start repaying the loan.
“Repayment of the loan was supposed to start sometime in December We are waiting for them to decide when to start repaying.
“We cannot force them to start repaying because it’s not our job. It is their money from their own revolving fund and if they want to benefit more, then they have to repay,” he said.
He said the vendors risk closing the revolving fund if they continue to refuse repaying.
Namakhwa, however, said the assembly will refer the matter to the ministry for action should vendors continue refusing to repay.
He said under the conditions of the loan, those failing to repay were bound to be punished. He, however, could not specify the punishment.
“I am not very sure what the punishment is but I know those defaulting will face disciplinary measures,” he said.
Chairman of the vendors’ committee, Saizi Daison said vendors were not defaulting but were asking for an extension of the period to help them pay back.
He said many vendors used the money to buy maize because of the food shortage.
Daison said the committee held a meeting with all the vendors in January where vendors complained about their inability to repay the rains.
They indicated that they would repaying the loan until May, after harvesting.
“We would have presented the proposal in January but the representatives from Blantyre city told us they were on leave. The vendors are not refusing to repay only that they don’t have the money because they used the money to buy food. It will be up to the committee to accept the proposal or not,” he said.
Namakhwa confirmed that the loan committee would be meeting next week but expressed ignorance on the vendors’ proposal.
The loan scheme has also been extended to Lilongwe, Mzuzu and Zomba Municipality vendors.
However, other city assemblies, notably Lilongwe say they will disburse the loans once the flea market is completed.
“The loan committee hasn’t yet disbursed the loan to the vendors. We are about to identify the beneficiaries before we give them the loans when the flea market is ready,” said Dalitso Mpola, director of planning and development for Lilongwe City Assembly. |
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