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Public procurement: Late payment penalties on companies suspended

Published on : Wednesday, 15 April 2020 13:53   Read : 3 time(s)
Public procurement: Late payment penalties on companies suspended

ALGIERS-Prime Minister Abdelaziz Djerad on Wednesday decided to suspend late payment penalties on companies in order to mitigate the impact of preventions measures to contain the Convid-19 pandemic on the country’s economic situation.

 "Aware of the responsibility to protect the industry sector, the Government, under the implementation of the instructions of President of the Republic Abdelmadjid Tebboune, has taken fiscal, parafiscal and borrowing measures to support companies impacted by the health crisis our country is facing," said the Prime Minister's instruction sent to members of the Government and Walis (governors).

The evolution of the health situation related to the COVID-19 epidemic and the effects induced by the measures of prevention and control of this epidemic have "negatively impacted" the country’s economy, "heavily affected” by delays in the supply of materials and raw materials and the unavailability of manpower, because of the temporary suspension of means of transport, said the PM.

In order not to penalize companies, which are unable to provide services, the provisions of Article 147 of Presidential Decree N 15-247 dated 16 September 2015, regulating public contracts and public service delegations are applied.

This article provides for "the suspension of contractual deadlines and the cancellation of financial penalties for delay within the limit set by the orders to stop and resume services issued accordingly by the contracting department,” said the source.

Penalties for delay will not be applied on all public contracts of the State, local authorities and public institutions as from the date of publication of Executive Decree N 20-69 of 21 March 2020, on measures to prevent the spread of Coronavirus.

The provisions of Article 147 of the Public Procurement Code must be applied by the contracting authorities, at the request of the contracting companies. In order to cushion the financial consequences of this crisis on public and private construction companies and on employment, the Minister of Finance is responsible granting urgent payment credits and revaluations to the various contracting authorities.

The Government will continue to examine all ways to face the difficulties encountered by Algerian enterprises as a result of the health crisis, wrote the PM.

Last modified on Wednesday, 15 April 2020 22:03
Public procurement: Late payment penalties on companies suspended

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