The supplies and contractors were speaking during a conference organised by the Public Procurement and Disposal of Public Assets Authority (PPDA). According to the National Suppliers Forum, the government can take over a year to pay suppliers and contractors which violates its own policies.
Government suppliers and contractors have condemned the poor and delayed payment system of government ministries, agencies, and departments after completing contracted works.
Government tells angry suppliers it's struggling with low funding
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According to government policies, for each awarded contract, suppliers stand to be paid within 30 working days.
Eric Babu, of Joy and Eric Enterprises, said these delays land suppliers and contractors in debt and operational malfunction. They then dip into their personal finances or get loans that accumulate because of delayed payment.
“After you have been awarded a contract, government ministries, departments, and agencies begin piling pressure on you to deliver yet they are reluctant to make payments for such works to go on,” he said.
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The Minister of Finance commissioner procurement policy, David Kiyingi said the government has been suffering from underfunding due to a reduction in donor support from development partners.
Due to these challenges, some contracts have been canceled to raise money to pay current arrears.
“Development partners used to support us, but now their support has reduced as they have channeled some of the funds to Ukraine-Russia war and address Covid-19 related issues,” he said.
However, Kiyingi mentioned that payments are also delayed in case of poor work but such conditions are not understandable to payment officers.
