Youth development fund looted: Nhema

via Youth development fund looted: Nhema 23/10/2014

THE government has admitted that the disbursement of the $10 million Youth Development Fund (YDF) was riddled with corruption and irregularities resulting in the majority of youths failing to access the loans.

Empowerment Minister Francis Nhema said on Thursday that $5 million was still available for disbursement but with conditions.

“We still have $5 million and it is still possible for youths to apply for it. In the past some had no expertise and there was no guarantee for repayment.

“Now we are insisting that one should have some training skill and expertise. Banks were offering expertise in writing proposals and we have seen that we were making a mistake because most youths need assistance to write proposals,” Nhema said.

The YDF was introduced by the government more than three years ago as a revolving fund of over $10 million to provide financial assistance for income generating projects for youths below the age of 35 as part of the government’s indigenisation and economic empowerment programme.

However, there has been growing complaints that some people over 35 years, some of them MPs, had benefited from the programme at the expense of deserving youths.

“Writing of proposals was being led by banks which gave expertise and we have realised our mistake in that because our youths cannot write proposals. Therefore we are now decentralising the process so that every province can access the funds equally,” he said.

The Minister said over 92 percent of the disbursed funds so far had not been repaid and the new condition would ensure there is a guarantee the loan-seeker will repay.