The State Audit Bureau has criticized the Ministry of Works for its ongoing failure to collect the outstanding money from contractors, resulting from delays in executing tenders as per the contracts concluded with the ministry.
According to correspondence, a copy of which has been obtained by Al-Qabas daily, the total amount owed by 27 companies was found to be 127 million dinars.
Despite the Bureau’s previous requests to collect these debts, the Ministry continued to record them in the account of debts owed to the government without deducting them, leading to inflated figures.
The Bureau has demanded an explanation for the postponement of fines for each contract separately and a clarification of the reasons behind such decisions.
In response, the Ministry of Works explained that fines were applied in most of the contracts mentioned in the letter, but some were postponed based on Ministerial Resolution 26 of 2018.
They assured that the delayed fine is now being applied to these contracts, and it will be deducted in the final payment certificates for some other contracts. The amounts mentioned in the letter represent the debt owed and not the value of the delay fine.
The Public Authority for Roads and Land Transport, in its response to the same letter, clarified that the discretionary authority to postpone the fine lies with the employer, considering the circumstances of each case.
This decision is usually made when the contractor has dues or guarantees available with the Ministry. The Authority emphasized that the purpose of postponing fines is to provide liquidity to the contractor and ensure the project’s smooth progress without unnecessary delays.
Additionally, some contracts cannot have the delay fine applied to them, as they received extensions after the contractual completion date until the date of initial receipt.
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