Financial Assistance for Job Retention (FA4JR) |17 June 2020

Yesterday’s meeting in progress (Photo: Thomas Meriton)

Private sector wants technical dialogue with FA4JR committee

The private sector is seeking for a technical dialogue with the Financial Assistance for Job Retention (FA4JR) committee to understand why several businesses, including some self-employed individuals, have had their applications for assistance rejected on the grounds of their financial reserves account.

This was said by the chairman of the Seychelles Chamber of Commerce and Industry (SCCI), Oliver Bastienne, following the post COVID-19 employment meeting held every Tuesday at State House and chaired by President Danny Faure.

The meeting brings together key stakeholders to discuss pertinent employment matters.

Mr Bastienne noted that apart from the FA4JR scheme, discussions also centred on the Central Bank of Seychelles’ (CBS) loan relief scheme for businesses and on the modality of the newly introduced Seychelles Employee Transition Scheme (Sets).

“The private sector is making a plea to government for a technical dialogue so as to re-assess the function of the (FA4JR) scheme and SCCI has put forward to President Faure that we, along with all other business organisations, want to meet with the FA4JR committee to discuss our problems and issues in relation to the scheme,” Mr Bastienne said.

He noted that through a survey conducted by SCCI recently, the question raised among its members, other private businesses, including self-employed individuals, was mainly on the modality used by the FA4JR committee to reject applications based on financial reserve accounts, among the four criteria used for assessment. He claimed that the private sector sees the ‘unable to pay salaries’ criteria in relation to reserve accounts not fair.

Mr Bastienne stated that the meeting also saw the participation of the governor of CBS, Caroline Abel, who gave them details of a few approved amendments in relation to the private sector relief loan scheme that they (the private sector) had requested during the last meeting at State House.

He said that the CBS loan scheme, through the Development Bank of Seychelles and the seven commercial banks, which was set up to help only micro, small and medium enterprises (MSMEs) facing financial constrains due to COVID-19, was more oriented towards the paying of salaries and keeping businesses alive.

He added that now, CBS, through the approval from its board, will allow for businesses to apply loans to pay for staff benefits among others which was not the case.

Mr Bastienne also said that SCCI was appreciative that CBS has also agreed with the private sector’s proposal to extend the moratorium from six months to twelve months and to extend the term repayment of the loan from three years to five years.

He noted that the CBS has also approved a separate loan scheme for larger businesses with a turnover above R25 million and very small businesses with a turnover below R10 million.

He stated that CBS will make a detail pronouncement on the new amendments in relation to the loan scheme in its press monetary update today.

He remarked that SCCI is very happy that CBS has taken on board the considerations from the private sector. He further remarked that the discussion was very positive and that SCCI is looking forward for more positive dialogue with CBS in future.

As regards to Sets, a temporary scheme created by government to assist Seychellois workers who will be made redundant as from July 1, Mr Bastienne said that through many comments and concerns from the private sector since its announcement, SCCI along with other private sector stakeholders will meet with the facilitator of the process, Guy Morel, on Friday this week for further understanding of the modality and structure of the company and its programme. The state owned company is expected to be operational from July 1 to December 31, 2020. Apart from assisting redundant workers, it will also support self-employed individuals as well as business owners who have to shut down their businesses due to financial hardship.

Antoine Robinson, the secretary general of the Seychelles Federation of Workers Union, said the union is very appreciative of the scheme by government through Sets for the continued employment of workers with guaranteed salaries.

He called on workers who will lose their jobs to join the scheme for continued employment and also for self development for future job opportunities when the situation comes back to normal.

Also present in the employment meeting yesterday with the private sector were the Minister for Finance, Trade, Investment and Economic Planning Maurice Loustau-Lalanne, the Minister for Employment, Immigration and Civil Status Myriam Telemaque, the Minister for Tourism, Civil Aviation, Ports and Marine Didier Dogley, Attorney General Frank Ally, and other top officials from the employment and finance departments.

Patrick Joubert