The Gwanda Community Ownership Share Trust (GCOST) wants to take legal action against some beneficiaries of the Youth and Women Empowerment Fund who failed to pay back loans received under the programme.
This came out during a Gwanda Rural District Council (RDC) development committee meeting held this Friday (today).
In a bid to economically empower women and youths who constitute the majority in rural communities, the GCOST set aside US$250 000 to assist the two groups to establish commercially viable business entities.
US$64 000 was disbursed to 27 groups in October 2015 under the agreement that the loan was to be repaid by October 2016.
The trust ‘s administrator said while other beneficiaries have repaid the loan which was accessed through CBZ the trust is now struggling to recover US$26 000 loaned to the other 10 groups.
The vice chairperson of the trust, Councillor Johnson Mangwagwa-Dube expressed disappointment at the high default rate saying the revolving fund is meant to assist more entrepreneurs and uplift the district.
The defaulters had engaged in poultry as well as cattle and goat fatting projects.
Meanwhile, the trust is looking to partner interested entities in viable projects to boost its revenue and ensure sustainability of the scheme that currently has US$3 million in its coffers.