I am pleased to announce and hand over four (4) Cheques today to four companies under phase three of the current government assistance program. The beneficiaries of todays payment are the following companies:
- Desh Besh Enterprises Limited – K7 million – Part Payment under Phase 3
- Papindo Trading Company Limited – K4 million – Part Payment under Phase 3
- Bismilliah Holdings Limited – K7 million – Part Payment under Phase 3
- Pypon Holdings Limited – K7 million – Part Payment under Phase 3
This represents about half of the claims that remain pending. In congratulating the companies for receiving the assistance, we are working hard to ensure that all legitimate claims that are pending are also cleared and release soon. Because they are claims from 2024, the Department of Finance is working with us to ensure that we honor these commitments while balancing the requirements and priorities of the 2025 Budget.
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 four companies are the first lot of companies to benefit from the second tranche of K50 million released recently to support Phase four 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.
We are working to complete phase four of the program, which is to work with the National Development Bank and selected commercial banks to facilitate concessional loan arrangements under this program. In this connection, 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.
I also wish to take this opportunity to urge other key partner agencies that the assistance program is a priority government intervention and we must do our utmost best to support the affected companies to restore their business operations. Provision of goods and services and employment to our citizens are now paramount.