Government is moving to bring greater control to an area of its operations; the
outsourcing for goods and services, which has been subjected to systemic ‘bobol’
for many years.
The Finance Secretary, Rasona Davis-Crump, has issued a circular outlining new
procedures for anyone providing goods or services to the government. These go
into effect from March 1.
“The procedures for engaging in a legal transaction to provide goods and services
to the Government of Antigua and Barbuda have been revised and take
effect March 1, 2024. This is part of the Government’s effort to strengthen
expenditure management and controls, ensure it receives value for money, and
improve relations with suppliers and contractors,” the circular stated.
It added that all merchants, vendors, service providers or contractors doing
business with the Government must be duly registered and compliant with the
Inland Revenue Department, Social Security, Medical Benefits and Board of
Education as required by law.
Speaking on the Browne and Browne Show on Pointe FM n Saturday, Prime
Minister Gaston Browne explained that there are some merchants who claim the
government owes them millions of dollars but who do not pay ‘even a dollar’ in
taxes. This must end, he declared.
The prime minister reported that the officials of the ministry of finance will meet
with the suppliers to do a complete review of their bills as he is of the view that
these may be subject to overpricing.
“What the suppliers/contractors have been doing, for decades, as we are only now
trying to reign them in, is that some have equipment that have been down (for
mechanical or other reasons), yet they still submit bills. Unfortunately, we have
some public servants in the system, who ‘see nothing, hear nothing’ as they
validate these bills, all for a little $500.00 on the side,” he revealed.
The plan is for the ministry to meet with vendors and service providers ‘to go
through these bills’ carefully, which according to the prime minister all involve ‘at
least fifty percent fat’.
One of the goals for the upcoming meeting is to ensure that all these entities pay
their required amount of taxes to the Inland Revenue Department.
The other rules being introduced by the ministry of finance to cover all government
outsourcing include; Once a Ministry or Department approaches a merchant,
vendor, or service provider to acquire a good or service the following steps must
be followed:
1. The merchant, vendor or service provider submits an invoice to the relevant
ministry/department detailing the exact quantities and itemised costs of the
requested goods or services.
2. The merchant, vendor or service provider delivers the good or service to the
ministry or department upon receipt of payment issued by the Treasury
Department.
3. At no point should a merchant, vendor or service provider supply any good
or service to any ministry or department on credit – that is, before being
issued payment by the Treasury – without the expressed approval of the
Office of the Financial Secretary.
For contractors doing business with the Government, the relevant Permanent
Secretary and the Contractor must execute a contract having followed the
requisite procurement procedures. This contract must then be signed by the
Financial Secretary BEFORE a contractor can commence work on any
project. If the contract is not signed by the Financial Secretary it is not valid
and payment cannot be made from the Treasury Department.
Any good or service supplied, or work undertaken by a merchant, vendor, service
provider or contractor in breach of the Government’s procurement procedures
may NOT be considered a legitimate liability of the Government.
All merchants, vendors, service providers, and contractors should be guided
accordingly.
