The private sector is yet to receive tax refunds of up to K12 billion the government, a sum owed to the private sector in form of services that the sector has been providing to the government.

As the face of the private sector, Vizenge Kumwenda addressed the above during the 27th Public Private Dialogue forum which was held on Friday in Mzuzu. “The private sector is being affected by the failure of government to pay the arrears in time and it threatens the prosperity of organisations because we are supposed to pay workers and we need to invest in businesses.” said the Nico Holdings Group Managing Director.

Present during the forum was Trade Minister Sosten Gwengwe who outlined that the Ministry of Finance had started paying the arrears, while the payments also have to be audited.

Meanwhile, the government also owes private landlords K15.3 billion in arrears, putting its departments and agencies which operate from rented properties at risk of eviction. Minister of Lands Kezzie Msukwa  outlined that sometimes the property owners demand interests and that has a negative impact on government coffers.