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Bottlenecks to `JK` loan funds worry President
2007-08-29 09:18:59
By Stephen Wang`anyi, PST, Bariadi
President Jakaya Kikwete has pledged to personally investigate the unsuccessful implementation of his plan to avail credit to Small and Medium Entrepreneurs through the government support initiative.
Addressing a public rally in Meatu District, Shinyanga on Monday, President Kikwete said due to numerous complaints and the fact that the entrusted financial institutions- CRDB Bank and NMB—had encountered various problems in the course of credit processing, he would take an initiative to identify the bottlenecks for the interest of the general public.
Among the grievances was the fact that most of the targeted group members had been disqualified and the loans given to well-to-do entrepreneurs instead.
`I will make a follow up on the matter because the financial guarantees provided by the government were meant to enhance small scale entrepreneurship through credit facilities under poverty reduction strategy,` President Kikwete said.
He deplored action by the acting manager of NMB Meatu branch, John Mrwanda, who allegedly refused to provide valid information to the district commissioner, who represents the President in the area, with regard to loans disbursement to SMEs as planned by the government.
`Every DC is my representative. I recommended issuance of the money to help low income earners make a difference in their income.
How come this NMB branch manager refused to provide me with the information required for the assessment of the exercise?
Is it possible that unintended people were assisted to get money at the expense of the poor? I will find out the whole truth,` the President remarked.
He said implementation of the second phase would see rural communities given priority in the acquisition of funds, contrary to the previous circumstances that saw urban dwellers getting more than the rest.
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