I am pleased to announce and hand over two (2) Cheques today to two companies under phase three of the current government assistance program. The beneficiaries of today’s payment are the following companies:
- Rahamatullil Alamin Holdings Limited – K3, 500, 00.00 – Part payment under Phase
- Asha Enterprises Limited – K3, 500, 000.00 – Part payment under Phase
The Department Finance is able to release cheques for these two companies only whilst payments for other qualified companies under this phase of the program are still pending. I wish to assure these other companies who are expecting payments under this phase of the program that the government is serious and committed to support you, and that your payments will be released once the Finance Department provides appropriate clearances.
I also wish to restate that the Government’s assistance program is comprehensive and on-going. As I have mentioned in my earlier statements, the program is comprised of both cash as well as policy and administrative support to the affected and qualified companies.
In this regard, there are five phases to the program, and they are as follows:
1. Phase 1 : Direct salary support for qualified company employs for 6 months
2. Phase 2 : Debris Removal
3. Phase 3 : Restocking and Reconstruction
4. Phase 4 : Concessional Loan support with the National Development Bank and selected commercial banks; and
5. Phase 5 : Policy and Administrative support
The NEC approved K270 million to implement the assistance program. Of this amount, K50 million was released last year which was expended to support qualified companies for the first two phases of the program.
The above two companies are the first lot of companies to benefit from the second tranche of K50 million released recently to support Phase three of the program. Other companies covered under this program will receive their payments as soon as the Department of Finance is able to clear their payment claims.
I am also awaiting further funding to complete phase four of the program, and also park some of the funds with the National Deployment Bank and selected commercial banks to facilitate concessional loan arrangements under this program. In this regard, our dialogue with the National Development Bank is already at the advanced stages to facilitate and implement this aspect of the program.
Meanwhile Phase five of the program is already in progress. As an important aspect of this program, the Central Bank has created an Express Lane for the qualified companies for their Foreign Exchange requirements. Additionally, similar arrangements are in operation within the IRC and Customs, as well as with NCDC for building board approvals for reconstruction purposes.
Through this assistance program many companies have either fully or partially recommenced their operations. Others are yet to recommence their operations due to the severity of the damages they suffered.
In this vein, let me reassure the affected business houses, as well as the business community of the governments undivided commitment and support to ensure they restore normal operations and restore normal services back to the communities.