The cash crunch facing the Government is starting to hurt businesses that supply goods and services to state entities.

Over the last three months, several businesses have not been paid and the operators have been unsuccessful in their efforts to get a timeline on when they will get their money.

Since last week, The Gleaner has received reports from business operators worried about the impact the Government's tardiness will have on their businesses.

"I am owed just over $500,000 for work I did for a ministry and the payment is more than two months overdue," the operator of a small printery said.

"I know that I will be paid but, in the meantime, my landlord is calling me, the bank is calling me and my business is in serious trouble," said the businessman who asked not to be named.

No more overdraft

It was a similar story from one business operator who supplies uniforms to government departments.

He is owed almost $15 million and has been struggling to collect for the last four months.

"As a result, my bank has decided not to offer me any overdraft facility. Already I have cut staff and could have to cut staff again," he said.

One business operator with close ties to the ruling Jamaica Labour Party also reported that he is owed millions, but said he was not worried.

"Almost every company in Jamaica is owed by the Govern-ment, but everybody knows they will be paid," he argued.

Cash-flow problem

Efforts to get a response from the Ministry of Finance and the Public Service were unsuccessful, but a senior government official admitted that there was a major "cash flow" problem.

"At present, we are only getting warrants from the finance ministry to pay salaries. None of our suppliers are being paid," the government official said on condition that she not be named.

The administration has already admitted that it is facing a major crisis to pay its bills, even though Prime Minister Bruce Golding recently claimed that it has enough money to pay salaries.

arthur.hall@gleanerjm.com