The Director General of the Treasury, Financial and Monetary Cooperation, explains how the exercise is being carried out, noting that other State debts will be progressively cleared.
Moral and physical persons being owed by the State in 2016 and previous financial years have begun receiving payments following the disbursement of FCFA 32,457,198,527 to clear domestic debts and other financial commitments of the State. The payment exercise which started on Thursday April 5, is expected to round off this week, the Director General of the Treasury, Financial and Monetary Cooperation, Sylvester Moh Tangongho said.
Going by the Director General, after an audit, the country’s unpaid internal debts and other financial commitment stood at FCFA 176 billion as of 2016. Bills worth FCFA 6 billion are explained to have been rejected due to some irregularities. Of the FCFA 176 billion, Moh Sylvester said FCFA 32 billion debt was considered as pressing while the remaining amount are counterpart funds which will be sent to the Autonomous Sinking Fund for handling.
According to Moh Sylvester, the operation which is the first in a series will continue in the days ahead. The Director General noted that government has often respected the 60 day period in the payment of bills but not in recent times due to economic hardship. However, he noted that a payment programme has been put in place to gradually make up for the delay recorded in the payment of bills of service providers to the State and its ramifications as regards outstanding amounts to be paid counting for the 2017 financial year.
The Director General told reporters payments are being done in treasury stations directly into the respective bank accounts of beneficiaries. “The beneficiaries do not have to come to us or process any document. They will receive their money directly into their accounts,” Moh said, insisting the cash was readily available.
He disclosed that the intention of government to disburse payment is to revive economic activities and build confidence. He said the funds are expected to act in favour of safeguarding and creating jobs, reopening sites where work had come to a standstill as well as making it possible to generate tax revenue for the State.