Reforms in the provision of credit guarantees by the Business Development Fund (BDF) are likely after the Parliament’s Public Accounts Committee (PAC) poked holes in the funding extended to Small and Medium Enterprises (SMEs).
During two virtual public hearings with BDF on the public finance mismanagement cases exposed by the Office of the Auditor General’s report for the 2018/19 financial year, PAC concurred with the AG that the Fund was not doing enough to support the growth of SMEs.
Yet, they said, large enterprises that are not eligible for BDF financing received support they did not deserve.
In the first hearing held on September 17, PAC was not satisfied with the explanations given by BDF officials for the mismanagement cases, prompting the committee to adjourn the session.
The hearing resumed on October 7 and lasted more than eight hours, during which more holes were poked in the way the