Lumezi Council reclaims over K420,000 from CDF loan defaulters after suing them

LUMEZI Town Council (LTC) has scored a major victory in its fight to recover public funds, successfully reclaiming over K420,000 from Constituency Development Fund (CDF) loan defaulters following a series of court actions in Chipata.

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The Local Authority last month dragged 34 defaulters to the Chipata Subordinate Court, seeking to recover K1.46 million in unpaid loans meant to empower small businesses in the constituency.

According to LTC, the move, is part of efforts to safeguard government programmes that give SMEs access to affordable credit.

In just 22 days, 18 of the targeted loan beneficiaries paid a combined K420,822.07, responding to a 15-day ultimatum from the court to settle at least 75 percent of their arrears or face continued legal proceedings.

Meanwhile, four defaulters signed consent judgments to pay K212,480.30 within two weeks.

Resident Magistrate Destiny Kalusopa warned them that failure to honour the agreement could lead to a Writ of Fiera Facias, which allows bailiffs to recover debt directly.

In another case, Senior Resident Magistrate Felix Kaoma issued a default judgment against four defendants who ignored the plaintiff’s claims, ordering them to pay K213,719.28 within three days.

LTC assistant public relations officer Irvin Muyumbwa said 10 more defaulters are expected back in court next week as hearings continue before Magistrates Betty Mwiinga, Chikumbi Ngulube, and Lydia Lwenje.

Muyumbwa urged other loan beneficiaries to follow suit.

“We further wish to implore other beneficiaries to take responsibility and honour agreements made when signing to obtain the empowerment funds,” said Muyumbwa.

By George Musonda

Kalemba September 11, 2025