SUMBAWANGA Municipal Council (SMC) in Rukwa has expressed its intention to prosecute loan defaulters, under special group scheme, who failed to repay the 100m/- in the last two years.
The municipality issued the loans to women, youths and people with disabilities related groups between 2018 and 2020 financial years but to date have failed to honour the repayment obligations.
SMC’s Youth and Loan Officer, Mahamoud Mohamed said yesterday the municipal issued the free- interest loans to the groups using its internal sources.
“The defaulters should understand that the funds they had been issued by SMC are not a charity .... They will be held accountable including to be arraigned into court where they will face the wrath of law” he warned.
He further noted that the SMC issued such loans to the targeted special groups, being a response to the government’s directive to give 10 per cent of its domestic revenues collection.
Mr Mohamed said that the SMC had issued free -interest loans amounting to over 400m/- to special targeted groups between 2018/19 and 2019/20 FYs saying 58 special groups had failed to repay the loans.
Mr Mohamed said that he had already communicated with leaders of the groups to ensure so that they honour the loan agreement. He noted that repayment of the loans would enable other people to secure fresh loans.