Entrepreneur calls for Government intervention

A BUSINESS that falls into the small to medium enterprise (SME) category wants the Government to help SMEs impacted by the effects of Covid-19 on the economy.
LG Debt Recovery Services (LGDRS) managing director Leo Gawi said most SMEs relied on clients to make money and meet bills and rentals, and it was likely that some would close due to the impact.
LGDRS, based in Kokopo, helps recover debts for companies. It also has branches in Port Moresby and Lae.
All the branches are closed due to the state of emergency.
“I would like to call on the Government, if possible, to find a way to assist small businesses, especially the SME sector, to cover for losses, especially loan repayments and rentals for the period of the SOE,” Gawi said.
“Most of us rely on our clients to make money and to meet our bills and with the impact of coronavirus and the SOE, we can’t do much.”
Gawi said some of the impacts included loss of business time.
“I can’t get hold of my clients and that includes business houses and Government agencies mostly because they too have closed down businesses,” he said.
“As a debt-collection agency, my due dates were not met on time by defaulters due to the SOE.
“Court matters were being postponed due to the SOE and the court house is closed.
“This resulted in defaulters or debtors escaping penalty.
“I can’t meet my bills for this month especially office rentals, water and electricity, I can’t meet loan repayment.
“Since the spread of coronavirus and later the SOE, our offices in Rabaul, Lae and POM weren’t able to get new clients or recover any debts from defaulters and debtors.”