Home » General » Sedco to Auction 13 Defaulters’ Houses

More than 13 houses, stands and other properties will go under the hammer today after the owners failed to pay back a collective $250 000 they borrowed from the Small Enterprises Development Corporation.A local auctioneer would sell the properties at Raylton Sports Club in Harare this morning.

On offer are complete houses, houses under construction and commercial buildings among others.

SEDCO general manager Ms Gladys Kanyongo said the company gave loans to different people in different sectors.

“Most of the loans were disbursed between 2010 and 2012. When our clients fail to pay we engage them. Selling properties is the last option we take.

“SEDCO has distributed over $4 million to business people and selling the defaulters property is the last option,” she said.

She said if a client repays the loan, the interests are put back to the normal rates.

Some farmers whose properties would be auctioned allege that they took long to pay back because they were owed money by the Grain Marketing Board after delivering their maize.

Ms Kanyongo said the houses being sold did not belong to farmers.

“We deal with clients from different sectors. Sometimes poultry and horticulturalists borrow money from SEDCO and these normally borrow small amounts of money.

“The maximum amount of loan that can be provided to an applicant for the current SEDCO loans is $20 000, regardless of the sector that they operate in,” she said.

She said GMB received funds from Treasury to pay all farmers it owed money and so farmers could not use that as an excuse for not paying their loans.

“Farmers can also bring their receipts to show they are owed money by GMB and we will extend the repayment period until the day when they will receive the money,” she said.

She said all clients are informed about all their loans’ conditions inclusive of the rate of interest chargeable during the agreed loan tenure and the interest chargeable when the clients default on agreed loan tenure.

The client is availed a copy of the loan agreement after signing the contract.

Source : The Herald