Home » Judicial » Hlongwane, Chiwanza Fingered in Youth Fund Abuse

Mberengwa East Member of Parliament Cde Makhosini Hlongwane (Zanu-PF) and Affirmative Action Group president Mr Chamu Chiwanza were yesterday fingered by legislators as having undeservedly benefited from the Youth Fund set up by Government to assist in income-generating projects for young people.

It also emerged that Johanne Masowe WeChishanu Apostolic sect leader Mr Lawrence Katsiru’s followers including his children failed to repay the loans that were aanced to them by the Ministry of Youth Development, Indigenisation and Economic Development through Allied Bank.

A check by the bank at Mr Katsiru’s farm in Mashonaland Central Province showed that there were no projects going on as had been initially intimated by the members of his sect.

The committee heard that the Ministry identified, processed and approved loan applications in respect of those administered by Allied Bank and the financial institution’s role was merely to disburse the money without checking on the viability of the projects.

This emerged when Stanbic and Allied Bank appeared separately before a portfolio committee on Youth Development, Indigenisation and Economic Empowerment, chaired by Gokwe Nembudziya MP Cde Justice Mayor Wadyajena (Zanu-PF).

Mkoba MP Mr Amos Chibaya (MDC-T) asked Stanbic head of business banking Mr Partson Mahachi why among the list of beneficiaries he submitted to the committee had Cde Hlongwane who got $33 000 and Mr Chiwanza.

Goromonzi West MP Cde Beata Nyamupinga (Zanu-PF) asked if the bank could use its discretion to vary conditions and award a loan to a person above the age cut off threshold.

Mr Mahachi said he could not confirm the age of Cde Hlongwane off hand, but said the viability of his project persuaded the bank to approve his loan.

He said they disbursed about $5,7 million from $20 million mobilised by the financial institution from depositors to help youths.

Allied Bank head of agribusiness Mr James Mada said they entered into a 100 percent guaranteed loan agreement with the Ministry to disburse loans under the Youth Fund and Johanne Masowe Wechishanu apostolic sects after they got $200 000 from the Ministry.

Source : The Herald