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Sunday, November 11, 2012

Service providers do not need to mount pressure on the state to pay their bills Sylvester Moh Tangongho, director general of treasury, financial & monetary cooperation


The state will close all its engagements by November 30, 2012. What measures have been put in place to ensure that all service providers are paid within the time limit?
I think that your question is double fold; having a budgetary and treasury aspects. Talking about the budgetary aspect since the closure of engagements falls within this sphere, all has been put in place to ensure that transactions stop normally. Service providers are quite aware of this date as well as vote holders. I don’t think that it is our duty to take any measures, but instead those who have services to offer to do so before this date.
 
The relationship between the state and its service providers is suffering from several ills; ranging from favouritism to anarchy. What analyses can you make of this assertion?  
The analyses I will make about this assertion is that service providers are being misinformed. I think it would be important that service providers get information from the right source. We followed some finance experts who made alarming declarations stating that the state accumulates arrears, which is of course false. The state does all it can to make sure that all its debts are settled on time. That is why of late, the minister of finance published all payments pending settlement in all treasury accounting posts. This is to let it known to the concerned that payments are made in a chronological order. When people are not aware of this system, they often rush to the treasury and beg treasury agents and go into similar procedures meanwhile they do not need all this. Anyone who has undertaken any transaction with the state does not need to come to the treasury. He simply waits for money in his account. Since the beginning of the 2012 fiscal year, we have made a duty to pay within 60 days maximum.  The last publication in Cameroon Tribune at the beginning of October indicated that expenses liquidated as of 31 August have been okayed for payment. If my calculations are good, then we are talking here of something about 46 days, far from the stipulated 60. We endeavour to respect this dead line right to the end of the year.
 
There are certain contractors who are complaining of having unpaid bills with the state. How do you explain that?   
I would like to precise here that these are dossiers that did not follow the normal budgetary procedure. They are thus not found within the treasury network. These are dossiers of which budgetary finances were not available. Services to be offered are often made based on the confirmations that indicate clearly that funds have been disbursed for that service to be provided. They are people who however carry out certain services based on placement orders. I think people need to respect the prescribed procedures. At the regional level, service providers must make sure that funds are authorized by the finance controllers and at the level of the accountant, that budgetary funds are available before they can undertake any service.
 
Some years back the idea of regrouping these service providers was brought up in order to facilitate debt recovery. Do you think that such a move is still necessary today?
The respect of payment deadlines is an obligation of the ministry of finance particularly the general directorate of treasury.  When we fixe the deadline of 60 days, it happens at times that we pay before this deadline. Service providers do not need to mount pressure on the state to pay their bills because the state tries to be self discipline in order to respect its commitment. In addition, the advantage we have is that the state has the possibility of raising funds from the monetary market at very interesting rates. Two weeks ago, we borrowed money from the monetary market at 1.7% which shows how credible the state is. In the franc and CEMAC zones, Cameroon is the only state in 2011 to have respected the four criteria of convergence amongst which is the non accumulation of arrears. This information was confirmed during the zone franc meeting that held in Paris on October3 and 4, 2011.
 

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