Two thirds of money loaned out to SME’s is not returned: Auditor General

A report by the Auditor General Mrs Mildred Chiri revealed that 67 percent of the money loaned out by the Small and Medium Enterprises Development Corporation (SMEDCO) has not been recovered. The money was loaned out between 2011 and 2016. The report also noted that officials at the ministry of SMEs were reluctant to account for the money.

Part of the report reads:

The Ministry (of Small and Medium Enterprises and Cooperative Development) disbursed $4,595,000 to Small and Medium Enterprises Development Corporation (SMEDCO) from 2009 to 2016, however, repayments amounting to $3,075,000 were still outstanding.

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…There is, however, risk that the ministry may fail to recover both the capital and interest if follow ups are not done on time. Of concern is the absence of an effective follow up system on outstanding loan repayments

More: New Zimbabwe

 

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