Boco Edet
28 December 2008
The Federal Government will,as from January 1, 2009, begin the payment of contract fees to contractors through the electronic payment system, Sunday Trust gathered at the weekend.
The objective of this payment system is to reduce the delay in making payments to contractors and to curb corrupt practices in ministries, departments and agencies of government. Corruption is believed to be the bane of the Nigerian civil service.
From the day the new policy kicks off, all agencies of government will stop using cheques or cash to make payments to contractors.
Sunday Trust learnt that the new policy will not only affect payment to contractors as from January 1, but it would be applicable to all employees of the federal government, who would be paid their entitlements in the same manner.
Consequent upon this, they must open accounts with commercial banks into which all payments due to them will be paid.
According to a circular from the Federal Treasury dated October 22, 2008 and signed by the Accountant-General of the Federation, Ibrahim Dankwambo, the reform aims at "eliminating unacceptable delay in the payment of government contractors who have been certified to have either partly or totally comp-leteed contracts awarded and due for payment."
The circular with reference number TRY/A8&B8/2008 said the implementation of e-payment for contract also aims at minimizing interaction between contractors and government officials who have roles to play in the payment of contractors.
The circular stated that in the new set up, all forms of payment will be done through commercial banks or the Central Bank of Nigeria (CBN), stressing that contractors of government must indicate their current accounts particulars with commercial banks on the invoice submitted for payment under their corporate seal.
"Mandates containing details of payment shall be issued the banks (commercial and CBN) authorizing them to pay into the contractors' designated bank accounts, the proceeds of executed contracts.
"In addition to existing monthly financial returns, every organization of government, ministry, department or agency must forward copies of mandates issued to banks of the office to the office of the Accountant General of the Federation," it maintained.
It specified that even public servants who have some entitlements to claim from their organizations will have to be paid through a commercial bank and urged all public servants to open accounts in the banks in which their organizations operate one.
"On no account should central pay officers collect cash from the bank for the purpose of disbursement to any government official," it warned, adding that the circular applies to all payments including recurrent funds, capital funds and in respect of all transactions.
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