Addressing a consultative kgotla meeting in Serowe Tuesday, Mr Mathoothe said what came to the fore was that the government was incurring losses worth millions due to companies inflating prices for provision of goods and services. 

“The government has lost significant funds to unscrupulous business owners who inflate prices simply because they were providing services to government,” he said.

To this end, he noted that the dishonest action caused prices to rise by more than 100 per cent of the market price, leading to government expending outrageous sums on acquisitions.

In addition, Mr Mathoothe, who is also Assisant Minister of Trade and Entrepreneurship, said certain companies were employing dishonest tactics like fronting to remove individuals from competition and maximise profits.

“We have observed with concern that certain companies intended to be solely manufacturers are currently using locals to front and establish businesses that market by-products. For example, you could come across a cement production company that is fronting and making bricks for sale. This is merely a strategy to get rid of local brick dealers and boost profits,” he said.

He warned that those fronting would eventually face the wrath of the law.

He urged communities to form clusters, arguing the approach would optimise out-put that could help revitalise the economy.

Moreover, he advised communities to create or merge cooperatives given that they presented opportunities for investments.

He is of the view that cooperatives had proven to be a mainstay of the economy  with more than P2 billion investment returns annually.

On other issues, Mr Mathoothe admitted that the government was struggling with provision and maintenance of roads infrastructure and social amenities owing to budgetary constraints, adding such would be dealt with funds permitting. ENDS