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Business News of Wednesday, 10 June 2020

Source: 3 News

No business will squander stimulus package – Ken Thompson

Chief Executive Officer of the Dalex Finance Ken Thompson has noted that the stimulus package provided to support businesses by the government in this period of the coronavirus pandemic will enable these businesses to operate until better times re-emerge in the future.

He explained on the Sunrise morning show hosted by Alfred Ocansey on 3FM 92.7 Wednesday, June 10 that the package will also enable businesses to pay taxes, which will in the end fetch government some form of revenue for development.

President Nana Addo Dankwa Akufo-Addo launched a GH¢1 billion Coronavirus Alleviation Programme (CAP) Business Support Scheme to help micro, small and medium-scale enterprises (MSMEs) impacted negatively by the coronavirus pandemic.

Out of the amount, GH¢600 million is coming from government coffers while commercial banks in the country also put together GH¢ 400 million.

Mr Ken Thomson said he is optimistic the businesses will put the money to good use.

“A lot of companies are going through tough times. Unfortunately, in this journey some will collapse. But this package will hopefully keep some of the companies afloat so that when things start to get better, they can start to work and they can also start to contribute to employment and payment of taxes.

“It is a critical support and I think a lot of times we don’t recognize the depth of the issues that are playing out.”

Mr Thompson recounted how he found in Hohoe, a hotelier who lamented his restaurant and hotel has been empty for the last few months and has now been reduced to playing cards.

“That is replicated across the country meanwhile that person probably has a loan to pay, he has got to pay utilities, he has staff so what does he do?

“So hopefully, the stimulus package will help him, if he gets it to remain afloat until better times come then he can start to build back, then the business remains on its feet [and] he still be able to employ people and he can still pay taxes.

“No private entrepreneur, somebody who has put their money in the business, if they really earned their money, will want to throw it away. What he is going to do is to keep the business afloat, he will pay bills and hope that in the few months’ time things will get better but if we leave him without a support the business will collapse.”