25 July 2008
Lichinga — Mozambican President Armando Guebuza said on Thursday that the government will from now on impose stricter checks on the selection of beneficiaries for the Local Initiatives Development Fund.
This is the fund under which the government allocates a minimum of seven million meticais (about 290,000 US dollars) from the state budget every year for each of the 128 districts. The money is supposed to be lent to local businesses and individuals for projects that will generate employment and increase food production.
Guebuza was speaking at a press conference in Lichinga, capital of the northern province of Niassa, at the end of a working visit to Niassa. Asked whether the low repayment rate on these loans would not jeopardise the goal of the initiative, Guebuza admitted that this is a challenge that must be overcome.
"What is happening now is a challenge, because the money lent must be repaid", he said. He insisted that the government is not thinking of reversing the initiative, but he did not advance any specific measures against those who default on the loans.
Guebuza stressed that people must be made aware that this fund is an investment that must be respected.
He noted that, although some citizens complain of lack of transparency in the granting of money, there are many more who are thankful for the initiative. "The important thing is for us to keep working", he declared.
In his rallies, Guebuza always insisted that this fund is not meant for purposes of immediate consumption but must be used to produce food and create jobs as part of the drive to eradicate poverty. In Maua district, for instance, he even compared the fund to seeds, which must not be devoured, but used to ensure the continuity of production.
One of the factors that, in Niassa, leads to failure to repay the loans is that the District Consultative Councils are not playing their role as inspectors and allow some beneficiaries to redesign projects already approved and use the money for other purposes.
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