SCORES of clients who applied for loans under the Copperbelt Youth Forum (CYF) micro-finance facility are demanding refunds of the down payments they made after failing to access the funds for close to 12 months.
When contacted for a comment the fund’s national coordinator, Alex Mutale said his organisation was genuine and had no intentions of swindling its clients.
“Our aim is to empower Zambians and we have so far spent K2.4 billion which was accessed by 500 people from different parts of the country. Those doubting us are free to engage the police to investigate us because we have nothing to hide,” Mr Mutale said.
He said his organisation was working in collaboration with the ministry of Youth Sport and Child Development, which was providing the much needed moral support.
The clients have, however, appealed to the Inspector General of police to launch investigations into the activities of the organisation.
The applicants from seven provinces applied for loans, whose amounts ranged from K5million and K50 million under a countywide youth driven micro-finance facility.
Loan applicants were compelled to pay 10 per cent of the loan amount as security fee and another down payment of eight per cent of the loan amount for administrative costs.
The affected people who include youths, widows and some rural farmers said in separate interviews that they had been swindled through the down payments that they paid as part of the condition to access the loans.
Loyce Tembo, who made a down payment of K1.8 million with the hope of accessing a K10 million loan in April said she was on a number of occasions told that her application was successful and that money was deposited in her account but there was nothing after she checked.
“I was later issued with a cheque which bounced and they told me that I will be put on the list of the next group to be paid but up to now I am still waiting to access the loan,” Ms Tembo said.
Nelly Phiri, who has over the last five months been frequenting CYF offices in Ndola said the youth, widows and other underprivileged people who struggled to raise the 10 per cent of the loan amount as down payment would not rest until they got refunds.
“Instead of assisting us they are now contributing to worsening our situation by holding on to our hard earned cash. The authorities should do something to compel these people to do what they promised the people after getting the down payments,” Ms Phiri said.
Manfred Mulyunga, a farmer from Mukonchi area in Kabwe said hundreds of disappointed beneficiaries who applied for loans since February now wanted refunds of the down payments that they made.
Mr Malyunga said the Government should intervene and ensure that desperate people were not swindled.
[Times of Zambia]