Treasury warns creditors against hiring debt collectors to chase government arrears

‘Treasury will not entertain any third parties’

Source: Treasury warns creditors against hiring debt collectors to chase government arrears – Zimbabwe News Now 

HARARE – Treasury has warned government suppliers and contractors against using consultancy firms or other intermediaries to recover unpaid bills, saying the state will not recognise or pay commissions charged for pursuing outstanding arrears.

Finance minister Mthuli Ncube said some government creditors were engaging third parties to chase payment claims in exchange for fees or a percentage of the contract value.

“Government will not entertain claims or obligations arising from arrangements entered between Government creditors and consulting firms or other third parties for the recovery or facilitation of payment on Government arrears,” Ncube said in a statement.

He said the government would not assume responsibility for any fees, commissions, percentages or other costs arising from such arrangements.

All ministries, departments and agencies (MDAs) had been directed not to entertain claims from consultancy firms or other third parties claiming to represent suppliers in recovering government arrears.

Ncube also warned government departments against sending suppliers and contractors to Treasury to follow up on payments, saying this was contrary to established government procedures.

“Treasury would like to unconditionally advise that officials will not entertain or engage any such suppliers or contractors who visit or call on them,” he said.

The minister said creditors should instead pursue outstanding payments through the MDAs that contracted them and follow established procedures for verification, processing and settlement of legitimate claims.

The warning also extends to holders of Treasury Bills, who have been told not to use third parties to follow up on matured bills or their liquidation.

“Treasury will not entertain any third parties,” Ncube said, adding that the government would also not consider requests to discount Treasury Bills because their maturity profiles had been set in line with government cash flows.

Ncube said no consultancy firm, agent or other third party had authority to facilitate, guarantee or secure payment of money owed by government.

“Government creditors who choose to engage such entities do so at their own risk and should not expect government to recognise or settle any resulting fees, commissions or other associated costs,” he said.

The warning comes as government continues to manage substantial obligations to suppliers and contractors, with Treasury seeking to enforce centralised procedures for the verification and settlement of state debts.

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