Government bungle sees R400 million unpaid

In terms of the Productive Asset Allowance Scheme, vehicle manufacturers and component suppliers can claim back 25% of their capital expenditure and payments are supposed to be made to them at the rate of 4% a year for 5 years.

This has not happened and Department of Trade and Industry spokesman Sidwell Medupe has confirmed that there "are problems", which have delayed the flow of funds back to the automotive manufacturers.

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