CEEC defends its harsh loan conditions

The Citizens Economic Empowerment Commission (CEEC) has refuted allegations that 500 people in Mazabuka were denied loans by the commission because of lack of collateral.

CEEC Director for Empowerment Ricardo Lupenga explained that the misunderstood the commission on the issue of collateral.

Mr. Lupenga said the 500 applicants thought the only collateral that they could use was a house.

He clarified that collateral does not only constitute housing and other buildings only but can also include movable but valuable assets.

He said people must not listen always rely on the information which CEEC provides and not listen to other people.

Mr. Lupenga further explained that CEEC funds which people get were not grants but loans which must be paid back.

He has since appealed to those that have accessed CEEC fund to pay back in due course.

Mr. Lupenga told ZANIS that CEEC was established to empower people of different backgrounds as long as they follow the correct procedure of acquiring the loans.

He further said people must also understand that it is required of them to register their companies with Patents and Companies Registration Office (PACRO) and the Zambia Development Agency (ZDA) before they can access CEEC loans.

He further challenged citizens to come up with productive and viable project proposals for the CEEC to consider their applications.

About 500 people in Mazabuka in Southern Province were allegedly denied loans by the CEEC because they did not have houses for collateral even when their projects were approved.

In 2009, CEEC only funded 200 hundred projects and rejected thousands of applications.

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