MoF: No tenders, contracts or LOIs without the approval of the Ministry

0
792

هذه الصفحة متوفرة بهذه اللغة: العربية

10 September 2020

MUSCAT (WAF)- The Omani Ministry of Finance (MoF) has directed government units to not float/award any tenders, or issue any orders or letters of intent (LOIs) to companies or contractors to implement any government project without completing the financial approval procedures by the Ministry.

Financial Circular No. 19/2020 -dated 9 September 2020- aims to put an end to “what has been observed of some ministries, government units, public authorities and institutions” completing contracting procedures for work and services with companies and contractors “without completing the approval procedures” from the Ministry.

According to the financial circular, all government units must pre-obtain the Ministry’s approval before: floating any tenders, assigning any business or entering into any new financial contracts -on the current, capital or development budget-, issuing any operating orders or LOIs to companies or institutions contracted to implement any government projects or to supply or providing any services.

The Ministry of Finance obliges ministries and government units to submit a detailed statement of all the amounts expected to be disbursed “within the framework of the liquidity approved for each entity, quarterly.”

The Minister has also directed the internal audit units in all government units to follow up on compliance with these procedures.

The step is part of the strict government spending control measures that the Sultanate is following to reduce the fiscal deficit gap between revenues and expenditures in light of the low oil prices and the repercussions of the spread of the Coronavirus on the economy.