News Briefs - Citizen Contractor Debt Bail Out

In a controversial move the government has passed legislation setting up a fund of P50 million to assist citizen owned contracting companies to meet their debt obligations and complete on-going contracts. The fund provides soft loans on a "case by case" basis. The aim is to keep citizen contractors in business in the face of competition from foreign companies. The construction industry is a vital employer in the country. The controversy arises from the fact that among the 36 companies likely to benefit from the scheme are two which are owned by relations of cabinet ministers.

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