Neef disburses K13bn in 5 months
National Economic Empowerment Fund (Neef) says it has disbursed K13 billion since the beginning of the 2023/24 fiscal year in April.
The amount means that Neef, a government entity which rebranded from the Malawi Enterprise Development Fund Limited in September 2020, has now given out K73 billion to various groups and individuals since February 2021.
The disbursements have now reached over 160 000 beneficiaries across the country, who are engaged in various businesses.
Briefing journalists after appearing before the Legal Affairs Committee of Parliament on its Institutional Integrity Committee (IIC), Neef chief executive officer Humphrey Mdyetseni said the institution has made progress in loan recovery from its clients at above 70 percent.
On fighting corruption at institutional level through the IIC, he said Neef has declared a zero tolerance stance on corruption in conformity with the National Anti-Corruption Strategy.
Said Mdyetseni: “Of course, there have been concerns to do with potential corruption areas, but we have strengthened all the loan collection avenues by ensuring that our clients repay their loans through the bank.
“And where necessary, suppose we are doing what we call a forced loan recovery, then it is teams that do the collections and not individual loan officers. We have also carried out massive civic awareness of the public advising them to ensure that whatever payment they make, they are given a receipt.”
However, he said the remaining 30 percent is crucial as failure to recover loans is making it difficult for the institution to serve new clients using the revolving fund.
Mdyetseni attributed the challenges in recovering loans to the prevailing tough economic environment which has affected business performance, complacency, as some feel entitled to the funds and logistical challenges “as almost 80 percent of our clients are in remote areas where banking outlets and other services for electronic banking are hard to access”.
Government launched the National Anti-Corruption Strategy with a requirement for public institutions to establish ITC to champion the fight against corruption at the institutional level.
Committee chairperson Albert Mbawala said they have an oversight role in ensuring that all ministries, departments and agencies are complying with the strategy in terms of establishment of IICs to fight and prevent corruption as well as developing policies that support the implementation of their various action plans.
During the meeting, the legislators urged Neef management to check reports that its officers are engaging in various corrupt practices, especially at the district level and also ensure equal distribution of loans in all districts despite their political affiliation.
Neef is a government-owned microfinance institution whose mission is to economically empower ordinary and underserved Malawians, with a focus on women, youths and persons with disability, through the provision of quality, affordable and sustainable microfinance services for improved livelihoods.
