By Moses Ziyambi
Masvingo provincial head in the Ministry of Youth, Indigenisation and Economic Empowerment, Kudakwashe Machako told his new minister Patrick Zhuwawo that the Youth Development Fund was abused by some of the beneficiaries while the other half lack the commitment to pay back.
Speaking at a familiarisation meeting for Zhuwawo in Masvingo yesterday, Machako said the high rate of defaulting among the beneficiaries had effectively killed the fund.
“The default rate is 89 percent by our own calculations. Most people, for various reasons, are not paying back the money that they borrowed under the fund. I am not necessarily saying they abused the funds – though there are some who did abuse the funds – it is just lack of commitment,” said Machako.
The fund was incepted in 2011 supposedly to advance youth economic empowerment and ease the burden of unemployment.
Its administrative process has however, been criticized as unsustainable, not transparent and being used as a vehicle to advance Zanu PF patronage.
Patrick Zhuwawo
In claims that could further discredit the fund, Zhuwao indicated that there is no clarity as to the actual amount that Masvingo got, with official figures varying from those held by banks.
“Masvingo is said to have got $222 000 from the one million dollars disbursed, but CABS is saying it’s $230 000. Whatever the amount, it was not enough and we have since talked to CABS, IDBZ and CBZ to see what really happened and get to the bottom of the matter. We want it to be not only a revolving fund but a growing fund,” said Zhuwao.
CABS, IDBZ and CBZ were some of the disbursing agents of the funds.local
