Dear Brunei

Govt Owes Contractors $5.4 Million, Says Minister
By Izam Said Ya’akub

Bandar Seri Begawan – The government owes contractors a staggering $5.4 million as of January 2008. This was disclosed by the Minister of Development, Pehin Orang Kaya Harnzah Pahlawan Dato Seri Setia Hj Abdullah Begawan Mudim Hj Abu Bakar, at the launch of the Public Works Department’s roadshow in conjunction with their customer care campaign at the Civil Service Institute yesterday.

“I was made to understand that the construction contracts carried out by the Department of Building Services under the annual budget, in this year alone, has seen 150 payments to contractors have exceeded 30 days, with the payments amounting up to $6 million,” said the minister, explaining the relevance of the period of honouring certificate. The minister called for an acute monitoring of monetary flows by contractors as well as by clients. “When construction begins, a healthy cash flow is an integral factor in ensuring that works on-site can run smoothly. This is not just applicable to contractors, hut the client too,” said the minister.

Whilst the figure is small compared to the budget allocated towards government departments for construction works, it is still a sample that drew great concern. “This shows that we, as civil servants and officers of the government, who are supposed to be leading by example, have failed in meeting the terms outlined in the contracts signed and agreed with contractors.” The minister stressed that this amounts to a breach of contract. “More importantly, we have tarnished the image of the government and country, which has been famed for our riches.” Pehin Dato IIj Ahdullah duly pointed: “Imagine yourself to be a contractor, if the contract payments are swallowed whole by the banks, what is left to pay suppliers or workers?”

Ultimately the minister underlined the negative spin off which “at the end of the day, we all lose.”

– Courtesy of The Brunei Times

I didnt say it, the Minister of Development did.