GH¢600m SMEs stimulus package should not end up with friends, family businesses – Ricketts-Hagan

Former Deputy Minister of Finance and Member of Parliament for Cape Coast South, Kweku Ricketts-Hagan, has cautioned the government to ensure that GHc 600 million COVID-19 stimulus packages are awarded fairly to legitimate Small and Medium Enterprises (SMEs) meant to receive the rescue package.

Speaking on TV3 Hot Issues on Tuesday, May 5, he said he was concerned that the money meant to be an emergency relief to cushion businesses against the impact of COVID -19 and save them from possible bankruptcy, shutdown and loss of millions of jobs, has still not been disbursed to businesses.

He said “It has taken too long for the government to bring out the guidelines and modalities for loaning out these monies to small and medium enterprises, who desperately need the money to stay afloat and save jobs. “

He raised concerns over the delay of support especially to those hit hard by the impact of this coronavirus pandemic.

He said businesses such as tourism, travel, hospitality, conferences, entertainment, have already been hardly hit and some have already folded. The longer it takes the government to give out this money, the less effective it will be as a tool to fight the inevitable recession being created by COVID -19.

“The Finance Minister went to parliament about a month ago to get an approval for GHc 1.2 billion from the Contingency Fund to finance the Coronavirus Alleviation Programme, which the President has announced to fight the COVID-19 pandemic and GHc 600 million was to be used in soft loans to businesses. This approval was granted urgently and immediately by parliament to enable the Finance Minister spend this money immediately, but the GHc 600 million is still sitting there and businesses are closing down and people are losing their jobs.” He said.

Meanwhile, Executive Director of NBSSI, Kosi Yankey-Ayeh has announced that a portal for accessing GH¢600 million soft loan facilities would be launched for application processes to begin.

This is in line with President Akufo-Addo’s promise to support SMEs who have been hardly hit by the coronavirus outbreak.