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Red tape locks R534-billion in banks

2 Jul 2012

Business Report says that red tape in the public service is hampering investment and prompting companies to leave hundreds of billions of rand on their balance sheets, according to Economic Development Minister Ebrahim Patel. He says that businesses faced yards of red tape, including environmental impact assessments and licencing requirements that take an inordinate amount of time to process.

According to the Business Report report, his views were supported by Old Mutual's Crispen Sonn who said that more than R500-billion in cash reserves of corporate South Africa was prevented from flowing into capital projects. Sonn suspects the reason for this lay in the need to align government policies and improve the public service.

Read the full article on www.iol.co.za/business.