MoF issues circular on regulating payments of subcontractors
The Ministry of Finance (MoF) on Tuesday issued a financial circular (No 5/2021) about assessing subcontractors' dues.
As per the circular, the Ministry of Finance has directed all ministries, government units and state firms to ask contractors to furnish proof that the designated subcontractors have received all their dues in accordance with past payment certificates and prior to the finalisation of settlement of their (contractors’) payments scheduled to be received in return for executed tasks.
The circular stated that, due to the importance of adhering to laws and legislations regulating business dealings, the Ministry of Finance requests all the concerned departments to fully abide by the content of this new circular as a measure to serve the public interest.
The internal audit departments at the ministries and government units have to monitor the units’ commitment compliance with the circular, the ministry added.
The Ministry of Finance stressed that the financial circular is aimed at limiting the non-abidance of firms and establishments to the contracts awarded them when making due payments to subcontractors as per the contracts. This, the ministry added, impacts the business sector in the sultanate and the economy in general.