CEEC seize property worth KR 5.4 million from defaulters
THE Citizens Economic Empowerment Commission (CEEC) has seized property worth K 5.4billion (KR5.4million) from defaulters.
Speaking to journalists, shortly after a site tour of two of the seized properties in Lusaka yesterday, CEEC communications and public relations manager Glenda Masebe said the commission was pursuing 17 cases involving defaulters who had failed to honour their loan repayments.
“Out of the 17 cases that the courts have ruled in our favour, we have been granted writ of possession of seven properties and we expect to recover a total of K5.4 billion (KR5.4 million) and this figure includes the accrued interest to date. The initial amount disbursed by the commission to the seven entities is about K4.2 billion,” she said.
She named some of the properties seized in Lusaka as Emmams Motel in Kafue district, belonging to Emmanuel Munthali .
Ms Masebe disclosed that Emmams Motel who got a loan facility of K1.940 billion, only paid three part installments amounting to K58.2 million, with outstanding arrears of about K2.3 billion, with interest.
She said Emmams who received their loan from the commission in 2009, have defaulted in payments since 2010.
“The loan given was for tenure of five years and was due for completion of payment in November 2014,” she said.
She named the other facility re-possessed as One Africa Enterprise, who have only paid K5 million from the initial K250 million they received from CEEC in April 2010.
Ms Masebe said One Africa Enterprise received the loan meant for improvement of their operations, and that this loan was for a period of three years.
One Africa owes the commission a total of K297 million arrears for both principal and interest.
The commission has since sounded a warning to other property owners who have not yet paid their arrears to do so before measures such as those taken on these entities were extended to them.
Ms Masebe said the commission had embarked on a mission to ensure that their debt recovery system was enhanced.
“Two months ago we repossessed a farm in Ndola, and I mentioned that the commission has embarked on a serious mission to ensure that debt recovery is enhanced. We were initially at about 42 per cent loan recovery, which is not very good for us, and now we are at about 44 per cent, but our target is 100 per cent because we want to ensure that government funds are got from every corner of this country,” she said.
Other properties repossessed included an abattoir in Itezhi Tezhi and some property in Solwezi.
Ms Masebe said the re-possession exercise would be extended countrywide.