Baliya’s government has banned the use of cash in the state after it emerged that a company that was supposed to supply it had allegedly failed to do so.
Baliya governor Dusit Lakhdar told reporters on Wednesday that the cash ban was being enforced in response to a complaint that the company had not complied with the law.
He said that the state was concerned that if the government stopped the use and distribution of cash, there would be a large amount of illegal and counterfeit currency in the market and in the markets where people sell.
“This will create a huge impact on the economy,” he said.
“We have to act against this menace.
We have to make sure that we prevent money laundering and counterfeiting.
If we don’t do it, money will be used to bribe politicians.”
The company, ESI, had allegedly violated the law by issuing money and other cash to people without their knowledge or consent, Lakhder said.
It had issued an initial payment of $1.2 million to one person in August.
That money was later transferred to another person who allegedly sold the cash for more than $1 million, according to the governor.ESI has said that it was not aware of the transaction.
The company said that a second person had received the same amount of cash from the same source.
Lakhdar said the government had taken steps to curb the use, but it was difficult to stop it all at once.
“If we have a situation where people use it all in one go, the government will have to take the measures necessary,” he added.
“But there is a need for us to make certain that the authorities do not take advantage of that situation.
If that happens, then we will have a huge problem.”
The cash ban will come into effect on August 3, according the governor’s statement.
He said that in the meantime, ESU will be operating in a different manner.
