Muscat: The Ministry of Finance issued a circular (circular no. 5/2021) which contained a fresh set of guidelines with respect to the disbursement of dues to sub-contractors. According to the circular, all ministries, government units and state firms must ask their contractors to provide proof that designated subcontractors have received their dues in accordance with past payment certificates and prior to the finalization of settlement of their (the contractors’) payments scheduled to be received in return for executed tasks.

The circular further states that, due to the importance of adhering to laws and legislations regulating business dealings, the Ministry of Finance requests all departments that are concerned to fully abide by the contents of this circular as a measure to serve public interests.

The Finance Ministry emphasised that the circular is aimed at limiting the non-compliance of firms and establishments, to the terms of the contracts awarded to them, when making due payments to subcontractors as specified. The Ministry said that non-compliance impacts the business sector in the Sultanate and the economy in general. 

Internal audit departments in ministries and government units will be monitoring the firms’ commitment to compliance with the circular.