16/07/2025
MAMBWE TOWN COUNCIL TO TAKE LEGAL ACTION AGAINST CDF LOAN DEFAULTERS
Mambwe District, 16 July 2025 .
Mambwe Town Council has commenced a rigorous recovery process aimed at ensuring all beneficiaries of the Constituency Development Fund (CDF) loans who have defaulted on repayment since 2022 are held accountable under the law.
The Council is deeply concerned with the low repayment rate under the Youth, Women, and Community Empowerment Loan component of the CDF.
This shortfall is significantly hindering the successful implementation of the program, which is intended to empower local communities and improve livelihoods.
From 2022 to 2024, Mambwe Town Council disbursed a total of K7, 450,270.00, with an expected total recovery amounting to K8, 656,571.00, inclusive of both principal and interest.
However, as of April 2025, only K887, 454.37 has been recovered representing a very small fraction of the expected amount.
The public is reminded that recovered funds are intended to be a revolving fund, allowing as many youth and women groups as possible to benefit from the empowerment initiative.
Therefore, loan defaults not only affect implementation of this component but also deny other potential beneficiaries access to these vital funds.
Despite repeated engagements and sensitization efforts by the Council, only 2 out of 93 beneficiaries have consistently met their repayment obligations.
In light of this, the Council has resolved to begin issuing legal demand notices to all defaulters.
This move is in accordance with the CDF Guidelines and the provisions of the Public Finance Management Act of 2018.
The Council also wishes to call upon civic leaders to help by engage loan beneficiaries in their respective wards, urging them to honor their repayment obligations to avoid legal implications.
This call reinforces the Council’s serious commitment to recovering the loans through all available means.
The Council is committed to working with loan beneficiaries to establish flexible repayment plans where necessary, however, beneficiaries can urgently come forward to engage the Council before legal proceedings are fully enforced.
Mambwe Town Council remains steadfast in ensuring accountability, transparency, and sustainability in the use of public funds.
Issued by:
Grace Lungu
Assistant Public Relations Officer
Mambwe Town Council
Email: [email protected]