The government has introduced a stricter framework for the management and execution of public contracts as part of efforts to improve accountability and ensure timely delivery of services to citizens.
Senior Minister within the Office of the President with Responsibility for Finance Dr Ashni Singh said the measures follow directives issued by President Dr Mohamed Irfaan Ali during a recent meeting with permanent secretaries, regional executive officers and other accounting officers.
Speaking after a follow-up engagement with permanent secretaries on the president’s instruction, Minister Singh said the government’s objective is to ensure that contractors fully honour the terms and timelines outlined in their agreements with the state.
He explained that discussions focused heavily on tighter contract management and stronger oversight of the execution of government contracts for goods and services.
“The Cabinet’s expectation is that all contracts for the provision of goods and services to the government will be implemented to the letter of the contract,” Minister Singh stated.
He said this means contractors must deliver the agreed quantity and quality of goods and services within the timelines specified in their contracts.
The minister noted that permanent secretaries were instructed to strictly enforce contractual timelines and ensure liquidated damages are imposed on contractors who fail to meet agreed-upon deadlines.
Liquidated damages are standard financial penalties included in government contracts to hold contractors accountable for delays.
Minister Singh further warned that where contractors continue to fail to deliver even after the liquidated damages period has commenced, steps must be taken to terminate those contracts.
The finance minister also reinforced the requirement for performance bonds to remain in place throughout the life of the contracts.
According to the minister, permanent secretaries will be held responsible in instances where performance bonds are absent, allowed to lapse, or expire before contractual obligations are fulfilled.
Additionally, the government announced tighter controls on contract variations and contingencies.
Minister Singh said contingencies that previously allowed flexibility in contractual pricing will no longer be permitted, and any proposed variation to agreed contract prices must return to the original approving authority.