GOVT SUPPLIERS WILL BE PAID

MBABANE – All government-owed suppliers and service providers shall be paid by the end of the month.

This was said by the Minister of Finance, Neal Rijkenberg, yesterday. He said at the moment, government was computing data to ascertain the number of suppliers that it was indebted to.

The minister anticipated that this process shall be completed by the second week of the month (mid-January).
The verification process follows an invitation that was extended to all entrepreneurs that conducted business with government wherein they were invited to resubmit their documents and undergo a verification process before being paid.

The Ministry of Finance issued the notice, stating that it would only pay suppliers who could provide documentary proof of services rendered. This, Rijkenberg said, was aimed at processing outstanding claims in a transparent, orderly and fair manner.

Method

He said the method required proper scheduling and comprehensive stock taking. In the statement calling on suppliers owed by government to submit proof of service to government, the Finance minister said all claims would be subjected to verification by the relevant line ministries and the internal Audit department before being passed on to treasury.

The claim, he said must be accompanied by a purchase order, tax invoice, delivery note, contract documents and the tender award.
 “The arrears settlement schedule cannot be complete without confirmation of the outstanding payments by the affected suppliers through the submission of claims,” he emphasised.

Oustanding

The minister yesterday further said following ascertaining the outstanding arrears to suppliers and service providers, government had prepared E2 billion to settle the debts.

He said his ministry was of the notion that the amount outstanding to suppliers and service providers was less than the money budgeted for the item.
However, he said, should the verification process prove otherwise, external suppliers and service providers shall get first preference and monies owed to parastatals shall be paid at a later date.

Parastatals

“If the money owed is more than what we have, the parastatals will be the last to be paid as that can be viewed as government owing government.” This, he said, was aimed at salvaging the closure of businesses given that many were failing to cope with the outstanding debts.
Acknowledged

Rijkenberg further acknowledged that government’s cashflow improved in the last quarter, especially in December 2019. This was substantiated by the fact that the Eswatini Revenue Authority (SRA) exceeded the target of E1.2 billion.

The minister was quoted by one of the daily publications as having said: “The cashflow looks positive and we have been able to meet some obligations and cleared some arrears. This has been evidenced by the impressive tax collection of December 2019 as SRA exceeded the E1.2 billion target. This is a notable achievement compared to that of the other months which vary and do not exceed E800 million.”

Given the improved cashflow, the minister acknowledged that the tax collection would supplement what government had committed to pay owed suppliers.

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