…As finance upgrades systems, pays 21% better
THE government has refuted claims that their payment system is off saying that the ministry of finance has upgraded its system in a bid to better service delivery as far as payments are concerned.
Acting permanent secretary in the Finance Ministry Titus Ndove who spoke to Confidente explained that government continues to pay its suppliers and even had better impact in December 2016 contrary to reports that many supplier were not paid.
“The Government continues to pay the suppliers and therefore, the festive season has not impacted negatively its ability to meet its obligations. In December 2016, the Government payments were 21% more than the previous month. This is a clear demonstration that the festive season did not experience any interruption in the normal payment process of the Government and the officials were at hand to provide the necessary service,” he said.
Acknowledging that there were days in which the system was not utilised during its migration process to a new Integrated Financial Management System (IFMS), Ndove further highlighted that other modes of payment were utilised to pay suppliers.
“The Government has two modes of payments – EFT (payments less than N$5 million) and local transfers (payments more than N$5 million and foreign payments). During the week of 3 – 6 January 2017, the Government finalized the server migration of the whole Integrated Financial Management System (IFMS). The migration is aimed at improving overall performance –faster processing of transactions. During the few days of migration other mode of payments were utilized to pay suppliers,” he explained.
It was earlier reported by the Namibian that some business people said they have not yet been paid for services rendered to government last year, ostensibly because of a payment system dysfunction at the finance ministry.
The business people, who spoke on condition of anonymity, also said finance ministry officials who were supposed to authorise payments were still on leave until mid- February.
The Namibia Chamber of Commerce and Industry (NCCI)has been on record in the later stages of last year saying that late payments to contractors contribute to poor workmanship and the abandonment of some government projects.
The chamber has also openly argued that contractors are blamed for shoddy work on capital projects, but government and other service providers contribute to this situation, because they usually fail to pay contractors on time.
Failure by government to pay contractors on time has often left contractors with serious debts and unable to pay their workers. In some cases they buy the building material on credit.
Confidente. Lifting the Lid. Copyright © 2015