Lax Laws Foster High Indebtedness
Monday, October 27, 2014
Methews Tshotelo
Speaking to the Business Monitor, Tshotelo said most people are caught in the trap of high arrears because financial institutions and banks are failing to give sufficient information on their charges.
“ There are many cases of high indebtedness debts in Botswana and in most instances people jump into loans without being informed about the charges,” he said.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...