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)

i. Provisions to Prevent Delay in Contract Payments:

  1. All payments for duly certified contracts must be processed within a stipulated timeframe, typically within 30 days of certification, to ensure timely payment.
  2. 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:
    1. Suspension from office pending investigation into the reasons for the delay.
    2. Financial penalties or surcharges imposed to compensate for any interest or penalties incurred due to the delay.
  • For Legal Entities (e.g., contracting companies):
    1. Blacklisting from future government contracts, prohibiting participation in future procurement processes.
    2. Imposition of fines based on a percentage of the contract amount as a deterrent against payment delays.
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