Rédaction Africa Links 24 with Times News
Published on 2024-04-16 07:44:29
The National Economic Empowerment Fund (Neef) has recently made headlines after writing off K11.3 billion in loans that were not repaid by beneficiaries of its predecessor, the Malawi Enterprise Development Fund (Medef). Reports indicate that beneficiaries failed to repay loans totaling K26 billion that were obtained between 2005 and 2018. Neef’s Chief Executive Officer, Humphrey Mdyetseni, confirmed this development, stating that during this period, approximately 80,000 individuals benefited from loans under Medef.
In a recent interview on Times Television’s Hot Current Programme, Mdyetseni clarified reports stating that Neef had written off K6 billion. He emphasized that the term “writing off” does not mean that the loans are forgiven or canceled, as they are actively pursuing defaulters. Out of the K26 billion loaned out, only 16 percent was recovered, with Neef managing to recover over K2 billion so far.
Mdyetseni highlighted that these loan programs were politically influenced, with some individuals viewing the money as political gifts. Politicians played a prominent role in identifying beneficiaries, leading to incorrect record-keeping and zero political interference in the current operations of Neef. Information Minister Moses Kunkuyu echoed these sentiments, emphasizing the need to safeguard taxpayers’ funds and hold individuals accountable for their actions.
Kunkuyu urged Malawians to reflect on the misuse of public funds, emphasizing the importance of ensuring that loans benefit all citizens regardless of their political affiliations. He stressed the need for transparency and accountability in handling the issue of non-repayment, calling for proper investigations to prevent any potential manipulation.
Willy Kambwandira, Executive Director of the Centre for Social Accountability and Transparency, expressed concerns about the lack of transparency regarding defaulters who failed to repay the loans. He emphasized the importance of empowering institutions like the National Audit Office and Neef to reduce political interference and ensure proper oversight of funds.
A 2020 special audit by the government’s Central Internal Audit Unit revealed instances of alleged fraud at Neef, where individuals defrauded the institution of K53.2 million through questionable loan disbursements. This highlights the importance of robust monitoring and evaluation mechanisms to prevent misuse of funds and hold individuals accountable for their actions.
In conclusion, the write-off of K11.3 billion in unpaid loans by Neef emphasizes the need for stronger governance structures and accountability measures to prevent similar incidents in the future. It is essential for institutions to uphold transparency, tackle political interference, and ensure that public funds are used effectively for the benefit of all citizens.
Read the original article on The Times
