MP clarifies on suspended loans to special groups in Tanga

A TEMPORARY suspension of the councils’ loans to special groups in Tanga City Council is meant to reform the credit system and avoid fraudulent acts from untrustworthy officials, it has been stated.

The law directs each council to allocate 10 per cent from its own revenue sources to issue loans to women, youths and people with disabilities.

The clarification was made by Member of Parliament (Special seats), Husna Sekiboko during the first day of her visit to assess an implementation of the ruling party’s 2020-2025 election manifesto in the Tanga City.

Ms Sekiboko was reacting to views made by several CCM Special seats councillors at a meeting at Mwanzange Ward.

One of the councillors, Saumu Bendera said the suspension of loans shocked and affected their efforts to liberate themselves from the chains of abject poverty.

Another councillor, Fatma Kitogo, said the directive to stop loans issuance affected plans by several groups that had already qualified for the loans, adding that individuals are now vulnerable to informal loans offered at exorbitant interests issued by some individuals and unofficial entities.

The legislator asked Tanga residents to be patient while the government was working on new procedures that will be simple and effective.

She said people should have trust on President Samia Suluhu Hassan’s commitment to pull them out of poverty.

A Councillor for Maweni Ward, Mr Clovas Joseph, said several women groups have received loans amounting to 100m/- adding that more have applied for such credit.

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