The Minister of Information, Moses Kunkuyu has clarified the misinformation that the government has forgiven all those who received loans from National Economic Empowerment Fund (NEEF) following the announcement that the MK6 Billion has been written off, sparking discussions among Malawians
Speaking during stakeholders meeting in Zomba, Moses Kunkuyu said there has been a lot of misinformation since the announcement that MK6 billion in NEEF loans has been written off, people were saying that the Government has forgiven those who owes NEEF but it is not true.
“We have not forgiven anyone; we have just transferred data to another sheet and we will follow up anyone who received the loans” said Kunkuyu.
He further, said, loans collection processes are underway to recover every single kwacha.
However, Kunkuyu pointed out that, according to accounting principles, the written-off loans are regarded as bad debts and should not appear in the NEEF account statements.
He therefore warned that NEEF loans are not free and anyone assuming they are getting free money would be deceiving themselves and could be punished by the law.
The Minister commended NEEF management for engaging stakeholders to inform them about loan processes and procedures necessary to obtain loans.
“What was lacking in previous loans was engagement, contributing to a high rate of defaulters,” Kunkuyu noted. “Today’s meeting is crucial as it will enhance people’s understanding and reduce the number of defaulters.” He said
NEEF Chief Executive Officer Humphrey Mdyetseni emphasized that NEEF loans are not politically motivated but are meant to empower Malawians economically.
“This is Malawian money, and everyone should benefit,” said Mdyetseni.
He concurred with the minister that all beneficiaries of MADEF and MEDF who did not repay their loans would be pursued for repayment.
“Besides following up, these defaulters will not be eligible for any financial support from NEEF,” he added.
Over the past three years, the Government has distributed MK15 billion in the eastern region. This year, the government plans to distribute over MK100 billion, with about MK30 billion already allocated to the NEEF account.
Attendees at the meeting included vendors from Balaka, Zomba, and Liwonde, as well as councilors and officials from councils.
Zomba Vendors Association President Ian brown Chidothi hailed NEEF for the meeting, which he said would help business people make informed decisions before taking out loans.
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