Latest News Editor's Choice

News / National

Govt warns banks over civil servants COVID-19 allowances

by Staff reporter
14 Aug 2020 at 09:47hrs | Views
GOVERNMENT yesterday said it would not tolerate the practise by banks and shops to inflate prices on goods purchased using the United States dollar CoVID-allowance given to civil servants and pensioners.

In a statement, the Finance ministry said the allowances, deposited into government workers and pensioners' nostro accounts yesterday, were paid to the suppliers directly in foreign currency.

The statement followed reports that some retailers were overcharging on online purchases using the US$ allowances, which are not dispensed in hard currency by the banks.

"Treasury notes with concern and disappointment that some regulated banking institutions in connivance with major retailers have conspired to limit or prevent beneficiaries of the scheme from accessing the full foreign currency value of their payments," the statement read in part.

"We are receiving reports that some banks are telling customers that they have not received nostro US dollars from the Treasury, a situation which has resulted in reputational damage to the government and unnecessary ill feeling among civil servants and the public at large."

The ministry said some banks were unwilling or unable to provide platforms to enable beneficiaries to access the full foreign currency value of these allowances.

Source - newsday