THE ZAMBIA Federation of Disability Organizations is among several defaulters appearing in the Lusaka High Court for failing to honour cash loans they obtained from the Citizens Economic Empowerment Commission.
And the CEEC has applied to the High Court to enable them summon the other parties in the matter against ZFDO, among them the Zambia Federation of the Disabled Registered Trustees and the Disabled Entrepreneurs Association as they were of no fixed aboard.
This is in a matter in which the federation and its partners have failed to pay back the K1,500,000 loan obtained from the CEEC under a memorandum of understanding for the economic empowerment of persons with disabilities.
According to CEEC director credit, Monde Nchimunya, the loan facility allowed the defendants to pay back the loan at a 12 percent interest per year to be charged and recovered monthly in arrears.
The CEEC director said conditions for the loan included a legal mortgage which was dully obtained with the Trustees’ property namely Lot No 16543/M Kafue and also the Entrepreneurs Association plot at number F609/A/242/5/A Chama Valley, both in Lusaka.
“That the other condition for the grant of the loan facility was for the provision of personal guarantees from the directors of the first defendants who are the fourth defendant (Dr Charles Mwape) and fifth defendant (Imutongo Muyoba).
“That the loan facility of K1,500,000 advanced to the first defendant by the plaintiff (CEEC) was for a period of 24 months from the month of disbursement, but was subject to the plaintiff’s right to demand repayment of the facility at any time at its sole discretion,” Nchimunya said.
Nchimunya charged that the defendants not only failed to comply with the repayment schedule, but also defaulted on the loan facility and only paid K706,102.08, leaving an outstanding balance of K666,893.96 of the money obtained.
They charged that despite several reminders and demands sent to the federation, the organisations have “failed, ignored and neglected to comply with the repayment schedule as settle the K666,893.96 being outstanding as principal and interest to the plaintiff”.
They have since requested the courts to grant relief to the Commission repayment of the outstanding amount plus foreclosure of Lot No. 16543, in Kafue and subdivision of Plot F609/A/242/5/A Chamba Valley, as well as sale of the mortgage property and other further relief deemed fit by the courts.
Meanwhile, lawyers to the plaintiff, Messrs Palan and George Advocates have applied to the courts to allow them summon rest of the four (4) defendants by way of substituted service through the advertisement in a local newspaper.
The defendants to be summoned in the media included the Zambia Federation of Disabled registered Trustee (2nd Defendant), Disabled Entrepreneurs Association of Zambia (3rd Defendant), Dr Mwape and Mr Muyoba as fourth and fifth defendants respectively.
The matter comes up for hearing before High Court Justice Nigel Mutuna on 3rd March, 2016.
Over fifteen small business entrepreneurs and organisations have legal suits against them for failing to pay back loans obtained from the CEEC since 2010, including private schools including colleges, auto-shops and wood processing enterprises among others.