Retrenchments loom as gov’t fails to pay major contractors

As a result, most of the major billion pula works contract projects across the country have been affected by the government’s non-payment, contractors have revealed. The concerned contractors say it is just a matter of time before retrenchments hit the fan in the construction industry. The contractors say they have lost confidence that the government can be counted upon to pay its legitimate bills.

It is said that the last time the government paid the contractors was in the December/January period. Now, the major contractors are crying foul because they cannot service their bank loans. One affected contractor, who spoke to Mmegi on condition of anonymity, painted a grim picture of the situation. “The banks are chasing us away because we cannot service our existing loans. They refuse to lend us money to pay employees,” one of the big contractors explained.