Government is killing SA business owners

Another day, another sad sign of the ANC-engineered collapse of the SA economy.

South African business owners are currently owed over R7.1 billion in unpaid invoices by both national and provincial government departments and their businesses are suffering as a result.

DA MP Leon Schreiber says the figure relates to unpaid invoices more than 30 days old. National government owes businesses R634 million.

He said the department of water and sanitation was the single biggest offender, owing businesses R492 million, followed by agriculture owing R99 million and the police owing R24 million.

Because of this, many small and medium businesses have been forced to close, laying off staff and further contributing to the unemployment figure, which currently stands at 29%.

The government is, clearly, getting caught in a serious liquidity squeeze. And there are three options open to it.

First is to continue not paying what it owes. Second is to call in a loan from the International Monetary Fund or World Bank – which is an admission of defeat and send that signal to local and foreign investors.  Third is to grab pension money through the prescribed investments policy, which is looming.

All signs of a country becoming a failed state.

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