The National Economic Empowerment Fund NEEF has given a 60-day ultimatum to all clients that have outstanding loan balances and arrears.
In a public notice, NEEF has warned that failure to settle the outstanding loan balances and arrears within the stipulated period will trigger serious recovery actions including legal action and confiscation of pledged collaterals.
In his reaction, Center for democracy and economic development initiative CDEDI Executive Director Syvester Namiwa says this is a welcome development but was quick to say the 60 days are too much for those that were politically connected.
‘This initiative is very good because it will encourage those people who are owing the organisations and I also want to encourage those that are honest to pay back the money in so that others can also benefit, he said.
Namiwa suggested that those that got access to the loan due their political influence should at least be given 14 days to pay back the money, saying they benefited at the expense of ordinary Malawians who needed the loan the most.
“Coming back to those that accessed the loan because of their political connections should be punished people were facing abject poverty because of their greed so they need to be punished”, he explained.
He however said suggested that those that genuinely needed the funds for small scale businesses should be given ample time and make proper arrangements for them to pay back the loan.
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