LUWINGU town council has embarked on a journey of cracking down on defaulting beneficiaries of the Constituency Development Fund (CDF), urging them to pay back the loans they owe or face legal consequences.
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The council declared its intention to reclaim all CDF loans granted to beneficiaries between 2022 and 2025 that remain unpaid.
This decision comes after a significant number of loan recipients defaulted on their repayments, depriving the council of much needed funds for the community’s development.
It was revealed that in the years 2022 and 2023, the council disbursed a total of K 3,485,000 to beneficiaries, while in 2024, it disbursed K3,788,463.20.
From 2022 to 2024, a total of 148 beneficiaries received loans from the council, with 47 of those recipients currently servicing their loans as per the agreed repayment schedules.
During its third ordinary council meeting held in the council chamber, the council passed a resolution mandating its legal department to begin issuing demand notices to all non-performing CDF loan recipients covering the period 2022–2024.
According to Luwingu district council chairperson Rodericks Mulenga, the council’s decision to issue demand notices serves as a strategic step in its broader enforcement plan, designed to recoup CDF funds in line with the loan agreements.
Mulenga disclosed that the council has only managed to recover K 674,553.20 of the loaned funds from its beneficiaries.
In a bid to promote fairness and openness, the council also directed its management team to engage in a dialogue with all loan defaulters before issuing the demand notices.
Mulenga stated that this preemptive measure allows for an opportunity for the defaulters to understand the implications of their actions and provides a platform for resolving the matter amicably.
Mulenga also revealed plans to amend the Local Government Act No 2 of 2019 in order to ensure that it remains relevant to the evolving needs and challenges faced by local authorities in Zambia.
He highlighted the importance of continuous review and adaptation of legislation to keep pace with the changing landscape of governance at the local level, emphasising the need for responsive and effective regulatory frameworks.
He made this revelation when he presented his report during the full council meeting.
“The motion to amend the Local Government Act has received parliamentary approval, paving the way for its implementation in the near future,” he added.
And Council Secretary Benson Malama disclosed an important development concerning the district’s infrastructure.
According to Malama, the Luwingu District Council had received a substantial grant of K1 million under the Road Sector Grant and these funds would be allocated to the maintenance of crucial roads within the district, including the Chikoyi to Nsanja road and the construction of the Mpomomwe Bridge.
“Apart from the mentioned projects, the funds will also facilitate the construction of access roads within the Central Business District (CBD), a crucial step towards making the district more navigable for residents and visitors,” he added.
By Sharon Zulu
Kalemba July 1, 2025
