Ensure timely payments for services rendered, councils directed
DODOMA: THE Ministry for Finance has directed all councils nationwide to ensure timely payments for services rendered, aiming to prevent debt accumulation and reduce undue hardship for service providers.
This directive was issued yesterday in the National Assembly by Deputy Minister for Finance Hamad Hassan Chande, amid ongoing concerns about delayed payments to suppliers, particularly those providing food to public schools.
The deputy minister issued the directives in response to a basic question by Priscus Tarimo, Moshi Urban MP (CCM), who wanted to know the government’s plan to pay suppliers providing various services, particularly food, to government schools that have long-standing unpaid claims.
In response, the deputy minister said that the government is committed to paying these debts, including those owed to school food suppliers.
“The repayment process hinges on revenue availability and rigorous debt verification by the Internal Auditor General (IAG), per the Budget Act, Chapter 439 and the Public Finance Act, Chapter 348,” he said.
In a supplementary question, Asia Halamga Special Seat MP (CCM) sought clarification on whether the school service providers are included in the 949bn/- allocated by the government for debt settlement and asked about the payment timeline.
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Mr Chande confirmed their inclusion but stressed that disbursements depend on the availability of funds, urging patience from the suppliers.
Special Seats MP Cecilia Paresso (Chadema) asked a follow-up question, wanting to know about the payment status for road construction contractors.
In response, Mr Chande assured that all debts are under review and would be settled as soon as verification is complete and funds are available.
Responding to Chadema MP Grace Tendega’s question about the duration of the verification process, Chande said that all verified contractors would be paid promptly once funds were accessible.
During fiscal year 2023/24, upwards a total of 600bn/- was allocated to settle these debts and by the end of June a total of 491.25bn/- had been disbursed, he added.
Mr Chande acknowledged the challenges of delayed payments to suppliers and reassured that the government remains committed to paying suppliers as funds become available, aiming to stabilise food provisions in schools.
