Thursday, July 18, 2024

Business collapse, job losses feared as GABS shambles

Hundreds of businesses are feared to be on the brink of collapse while thousands of job losses is imminent as the troubled Government Accounting and Budgeting System (GABS) shambles down.

A savingram addressed to government ministries and departments from acting permanent secretary Matshidiso Bokole, dated 12 June 2024, titled “reports on outstanding payments to suppliers of goods and services by ministries” “The Ministry of Finance (MoF) has since August 2023 experienced declining performance of the Government and Budgeting System (GABS). Expressing fears of how the slow performance of GABS will have on the economy and businesses, Bokole stated that “Failure to pay suppliers on time often has far reaching implications on the economy and company cashflow which may in turn lead to closure of business and loss of jobs if not promptly addressed.”

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