Luwingu Council Takes Decisive Action Against CDF Loan Defaulters, Resolves to Issue Demand Notices

Luwingu Town Council has resolved to take decisive action against beneficiaries of the Constituency Development Fund (CDF) loans who have defaulted on their repayments.

In 2022 and 2023, the Council disbursed over K3.4 million in CDF and more than K3.7 million in 2024.

148 beneficiaries have been given loans from 2022- 2024, out of whom 47 are actively servicing their loans, signifying a power repayment trend.

Recently, the Council through its Public Relations Officer Tasila Banda, revealed that K674,553.20 has so far been recovered.

During its 3rd Ordinary Council Meeting, the local authority passed a resolution mandating the Legal Department to immediately begin issuing demand notices to all non-performing loan recipients covering the period 2022–2024.

According to the Council, this resolution forms part of its broader enforcement strategy aimed at recovering CDF funds in accordance with the terms and conditions outlined in the loan agreements.

The local authority further directed management to convene an urgent engagement meeting with all loan defaulters before the formal issuance of the demand notices begins.

Meanwhile, Luwingu District Council Chairperson, Rodericks Mulenga, announced that there is a proposal to amend the Local Government Act No. 2 of 2019, to carter for other prevailing developments in the local authorities.

Mr. Mulenga made the revelation when he presented his report during the full council meeting.

“The motion to amend the Act has successfully passed in Parliament awaiting implementation,” he said.

And Council Secretary, Benson Malama, disclosed that the local authority has received K1 million, under the Road Sector Grant.

Presenting a report during the Council meeting, Mr. Malama said the funds were meant to facilitate the maintenance of feeder and township roads in the District.

He cited maintenance of Chikoyi to Nsanja road and the construction of the Mpomomwe Bridge as some of the projects earmarked to benefit from the resources.

“The funds will also go towards the formation of access roads in the Central Business District,” Mr. Malama stated.