HGP Nightly News- The government is moving to tighten how public contracts are managed, with Permanent Secretaries now being instructed to ensure that contractors deliver goods and services on time, at the agreed quality, and within the terms of their contracts.
Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, said the move follows a meeting convened last week by President Irfaan Ali with Permanent Secretaries, Regional Executive Officers, other accounting officers, and members of Cabinet.
That meeting focused on the implementation of the government’s development programme, as well as accountability, prudent financial management, and the proper use of public resources.
According to Dr. Singh, President Ali made clear that he expects the strictest standards of public accountability to be followed across all ministries, regions, and government departments.
Dr. Singh said he later convened a follow-up meeting with all Permanent Secretaries, on the President’s instruction, to discuss tighter contract management.
He explained that this refers to the systems used to oversee government contracts with suppliers and service providers.
One of the main instructions issued was that contracts must be implemented exactly as agreed. This means that goods and services must be delivered in the quantity stated, at the quality required, and within the timeline set out in the contract.
Dr. Singh said Permanent Secretaries were specifically reminded that government expects timely contract implementation.
Where contractors miss their deadlines, Permanent Secretaries have been instructed to impose liquidated damages. These are financial penalties included in government contracts when a contractor fails to deliver within the agreed timeframe.
He said if contractors still fail to deliver after the liquidated damages period begins, ministries and agencies are expected to move swiftly to terminate those contracts.
The issue of performance bonds was also addressed. Dr. Singh said most contractors providing goods and services to the government are required to have performance bonds in place. These bonds allow the government to recover costs if contractors fail to meet their obligations.
Permanent Secretaries have now been told that they are responsible for ensuring that performance bonds are in place and do not expire or lapse.
The government is also moving to end the use of contract contingencies as a flexible way to adjust prices. Dr. Singh said any variation from the original contract price must now return to the authority that first approved the contract.
He said the measures are intended to create a stronger administrative system to ensure contractors are held to their obligations.
According to Dr. Singh, the overall goal is to make sure citizens receive the goods and services government contracted for in a timely manner.
He said the new instructions form part of a wider set of measures being pursued by the Ali administration to improve the quality of service delivered to citizens.
