News / Local
Govt loses millions to loan defaulters
16 Nov 2020 at 02:11hrs | Views
Government lost millions of dollars to Micro, Small and Medium Enterprises loan defaulters and fraudsters employed by the Small and Medium Enterprises Development Corporation.
In an audit report for 2012 to 2018, Auditor General Mildred Chiri said SMEDCO lost more than $2 million to loan defaulters.
According to Chiri, there were more defaulters for the period 2010 to 2012 where loans were granted without collateral and no proper due diligence was done when disbursing the loans.
The overall default rate was 48% of the loans granted during the period 2010 to 2012.
The rate of defaulting at branch level ranged from 23% to 76%. Harare branch recorded the highest defaults followed by Bulawayo.
In an audit report for 2012 to 2018, Auditor General Mildred Chiri said SMEDCO lost more than $2 million to loan defaulters.
According to Chiri, there were more defaulters for the period 2010 to 2012 where loans were granted without collateral and no proper due diligence was done when disbursing the loans.
The overall default rate was 48% of the loans granted during the period 2010 to 2012.
The rate of defaulting at branch level ranged from 23% to 76%. Harare branch recorded the highest defaults followed by Bulawayo.
Source - dailynews
