Delays in GRN payments a hindrance to SMEs
There is a serious delay in the payment of services rendered by small and medium enterprises (SMEs), particularly those in the construction industry, to government entities such as the Kavango East regional council.
The council's deputy director of planning and finance, Hakolanu Mweyo, raised this concern during a meeting under the Speaker of the National Assembly Peter Katjivivi's familiarisation tour to the Kavango East Region on Tuesday.
“We are finding ourselves in very awkward circumstances where we have engaged our SMEs for services but unfortunately there is a serious delay in payment. However in the meantime, government still continues to engage in new projects,” he said. Mweyo recommended that instead of engaging in new projects, the government should first clear the backlog of payments to avoid disadvantaging SMEs, which are the backbone of the country's economy.
He asked Katjavivi to communicate the message to Parliament that there is serious problem within the construction industry, as many people are laid off and debt is accumulating for constructors.
Responding to Mweyo, Katjavivi said he is hopeful that as time goes by, the situation will improve as government takes care of its standing commitment to process payments.
“Those who are directly responsible for this I am sure will act accordingly. One will gently inquire and see how things can be sped up because when you delay payment for a SME, it can actually lead to this SME to collapse,” said Katjavivi.
The NA Speaker thereafter proceeded to the Vhungu-Vhungu Green Scheme and the Ndonga-Linena Green Scheme projects.
His community outreach programme started in the Kavango West Region on Monday.
NAMPA
The council's deputy director of planning and finance, Hakolanu Mweyo, raised this concern during a meeting under the Speaker of the National Assembly Peter Katjivivi's familiarisation tour to the Kavango East Region on Tuesday.
“We are finding ourselves in very awkward circumstances where we have engaged our SMEs for services but unfortunately there is a serious delay in payment. However in the meantime, government still continues to engage in new projects,” he said. Mweyo recommended that instead of engaging in new projects, the government should first clear the backlog of payments to avoid disadvantaging SMEs, which are the backbone of the country's economy.
He asked Katjavivi to communicate the message to Parliament that there is serious problem within the construction industry, as many people are laid off and debt is accumulating for constructors.
Responding to Mweyo, Katjavivi said he is hopeful that as time goes by, the situation will improve as government takes care of its standing commitment to process payments.
“Those who are directly responsible for this I am sure will act accordingly. One will gently inquire and see how things can be sped up because when you delay payment for a SME, it can actually lead to this SME to collapse,” said Katjavivi.
The NA Speaker thereafter proceeded to the Vhungu-Vhungu Green Scheme and the Ndonga-Linena Green Scheme projects.
His community outreach programme started in the Kavango West Region on Monday.
NAMPA
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