SODELPA MP and prominent Suva layer who has been charged for careless driving says that his sources from within government say that the government is currently facing cash flow problems.
He added that the information certainly can be confirmed from many government departments indicating a general lack of cash to spend even on budgeted projects.
“$200M worth of approved LPO are still sitting there, because there is no money, waiting to be paid making it uneasy for some business to accept government LPO.”
“Government salary is also in arrears due for payment is over $400M, again because there is no money,” said Mr Nawaikula in a Facebook post.
He also said that rumor has it that the Fiji Roads Authority has cautioned government that contractors are threatening to pull out machines from the road due to delays in meeting payments and some businesses are not accepting government LPO.
“The reasons are many and it could even be the build up of expenditure arrears from deferred obligations , difficulties in financing deficits and higher debt servicing costs. We don’t really know and the Ministry of Finance and Economy better explain.”