- 7 Marks
Question
i. Identify TWO provisions of Financial Regulations which guide against the delay in contract payments. (3 Marks)
ii. Enumerate TWO punishments each that can be meted out to a government official and a legal person in case of delay in payment of contracts executed. (4 Marks)
Answer
i. Provisions to Prevent Delay in Contract Payments:
- All payments for duly certified contracts must be processed within a stipulated timeframe, typically within 30 days of certification, to ensure timely payment.
- Contract payments must be prioritized in line with budgetary provisions, preventing any intentional delays or misuse of allocated funds.
ii. Punishments for Delay in Contract Payments:
- For Government Officials:
- Suspension from office pending investigation into the reasons for the delay.
- Financial penalties or surcharges imposed to compensate for any interest or penalties incurred due to the delay.
- For Legal Entities (e.g., contracting companies):
- Blacklisting from future government contracts, prohibiting participation in future procurement processes.
- Imposition of fines based on a percentage of the contract amount as a deterrent against payment delays.
- Uploader: Kofi