Finance Ministry Issues Circular on Regulating Subcontractor Payments
Muscat, 13 Jul (ONA) – The Ministry of Finance today issued Financial Circular No. 5/2021 about assessing subcontractor dues.
In the circular, the Ministry 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 finalization of settlement of their (the contractors’) payments scheduled to be received in return for executed tasks.
The circular states that, due to the importance of adhering to laws and legislations regulating business dealings, the Ministry of Finance requests all departments concerned to fully abide by the content of this circular as a measure to serve the public interest.
Internal audit departments in ministries and government units have to monitor the units’ commitment compliance with the circular.
The Finance Ministry stresses that the 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 said, impacts the business sector in the Sultanate and the economy in general.