The financial institution was distributing the funds on behalf of its foreign-owned parent company
CABS managing director
Terry suggested that the high default rate was caused by a lack of business management skills amongst the youths.
Among the defaulters is Tongai Kasukuwere, brother of ex-Indigenisation Minister Saviour Kasukuwere, who had the responsibility of choosing beneficiaries. Kasukuwere "borrowed"
The fund was launched two years ago and 3,600 projects have so far shared
He said the government should fix the broader environment in which businesses have to operate before dishing out funds for empowerment projects.
"It is not just a matter of funding away the problems, it is a structural problem. You can't have company closures and then help set up tuck-shops in the same environment," Kanyenze told the Independent.
In March, former MDC-T Deputy Indigenisation Minister Tongai Matutu told SW Radio Africa that 95% of those who got the loans were ZANU PF supporters.
Matutu said the majority never meant to pay back the loans or use them for empowerment projects, because they viewed it as gifts from the party.
"So it was not based on the profitability or bankability of the project but on political allegiance and affiliation. Hence those people are failing to pay because those projects were never vetted or properly assessed by the bank itself."
MDC-T legislator Thamsanqa Mahlangu, who sits on the indigenisation portfolio committee, said the youths felt that the money was theirs to keep for demonstrating support for ZANU PF.
"Most of the beneficiaries took the money as 'thank-you' payments for votes. Their reluctance to pay is based on the ZANU PF culture of looting and unaccountability when it comes to shared resources.
"Such funds should be handled transparently and in a non-political manner. All youths, regardless of political or regional background, should benefit if they qualify for the loans according to the criteria set out by the banks," Mahlangu said.
Current Indigenisation Minister
Most Popular Stories
- Americans Still Pessimistic Despite Economic Growth
- Obama's Delay on Immigration Creates Uncertainty
- Obama on Labor Day: Don't Take Rights for Granted
- New Hershey's Logo Revealed
- Buyer's Remorse on Common Core for Policymakers?
- California Passes First US Statewide Bag Ban
- Mexico's Pemex Forecasts 6.7% Drop in 2014 Crude Production
- American Airlines Back on Obitz
- Echeveste Steps Down, Perez Steps Up at VPE
- Startups Offer Smartphone Banking Apps