Treasury hastens vendor payment

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THE Ministry of Finance’s Treasury Department has allocated two focal officers to follow up on any incomplete documents submitted by government agencies to avoid late payments towards vendors.

Senior Finance Officer at the Treasury Department Dk Amal Nabilah Pg Hj Sulaiman said sub-treasury officers are tasked to give the final approvals for any payment vouchers submitted by ministries or departments.

The two focal officers will then be involved if the sub-treasury officers query on any missing documents, and will follow up with respective departments or ministries to resubmit related missing documents needed for payment within two weeks.

“The Treasury Department introduced this earlier in the year, as part of efforts to expedite payments and avoid late payments to vendors, where they will immediately follow up with respective departments or ministries on missing documents accompanying the payment voucher,” she said in an interview recently.

Dk Nabilah added that the focal officers will also take the initiative to provide training to government agencies on the process of submitting necessary documents to the Treasury Department.

Acting Deputy Accountant General Maswadi Hj Mohsin said payment will be done within one to three working days once the Treasury Department receives the payment voucher from the department and proper documentation is provided. “When it comes to payment from the Treasury Department, what we require is the original voucher, the purchase order and supporting documents on approvals from the department’s authorities,” he said.

While the respective government department or ministry has the responsibility to submit all necessary documents along with the payment voucher, he said it is equally important for the vendor to do the same once they have been awarded a tender.

“Companies need to provide all the proper documents when they submit their invoices. They need to attach the purchase order (PO) and letter of award (LOA) and progress claim. Companies have the responsibility to attach the documents required,” Maswadi said.

Earlier this week during a DARe (Darussalam Enterprise) dialogue on late payments, Maswadi said all businesses engaged in government transactions must insist on being issued a PO by the respective department or ministry as part of the payment process.

He said even if the business has received a letter of award from the department or ministry, they need to insist on getting a PO. He added that with a purchase order, it shows that money within the department or ministry’s budget is already allocated for that procurement.

The Brunei Times