23 January 2013

Zambia: Citizens Economic Empowerment Commission Grabs K5.4 Billion Property

THE Citizens Economic Empowerment Commission (CEEC) has seized property worth K5.4billion (KR5.4million) from defaulters.

CEEC communications and public relations manager Glenda Masebe said the commission was pursuing 17 cases involving defaulters on loan repayments.

She was speaking to journalists shortly after a site tour of two of the seized properties in Lusaka yesterday.

"Out of the 17 cases that the courts have ruled in our favour, we have been granted writ of possession of seven properties and we expect to recover a total of K5.4 billion (KR5.4 million) and this figure includes the accrued interest to date. The initial amount disbursed to seven entities was about K4.2 billion," she said.

Some of the properties seized are Emmams Motel in Kafue belonging to Emmanuel Munthali.

Ms Masebe said Emmams Motel got a loan of K1.940 billion and only paid three instalments amounting to K58.2 million.

Outstanding arrears amount to K2.3 billion with interest.

She said Emmams received the loan from the commission in 2009 and has defaulted in payments since 2010.

"The loan given was for a tenure of five years and was due for completion of payment in November 2014," she said.

She named the other facility re-possessed as One Africa Enterprise, that only paid K5 million from the initial K250 million obtained in April 2010.

Ms Masebe said the commission had embarked on a mission to ensure that debt the recovery system was enhanced.

"Two months ago we repossessed a farm in Ndola, and I mentioned that the commission has embarked on a serious mission to ensure that debt recovery is enhanced.

"We were initially at about 42 per cent loan recovery, which is not very good for us, and now we are at about 44 per cent, but our target is 100 per cent because we want to ensure that Government funds are recovered from every corner of this country," she said.

Other properties repossessed included an abattoir in Itezhi Tezhi and some property in Solwezi.

Ms Masebe said the re-possession exercise would be extended to all parts of the country.

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