Contractors handling projects in the Federal Capital territory (FCT) would soon be smiling to the banks as the administration has said it is set to commence payment of over N40 billion, owed them.
Director of Treasury administration, Mr. Ibrahim Bomai disclosed this in an interview with journalists where he said a total of N40 billion had already been approved for the payment of contractors being owed.
He said the debt accumulated by the FCT administration in the last four months was about N64 billion and added that the payment of such funds would depend on the certificates of projects completed as specified under the Public Procurement Act.
Bomoi further disclosed that money approved for settlement of debts owed contractors was generated from statutory allocation, internally generated revenue (IGR) and loans from the Debt Management Office (DMO).
Commenting on complaints by some contractors who alleged delay in payment after completing their projects, the director explained that all due procedures were usually followed by the administration to arrive at final settlement of debts for contracts executed.
He maintained that the administration had set up a cash flow management committee, which evaluates the processes of executed contracts and that during cash shortfall, the committee determines payments based on available funds, insisting that selection of contractors due for payment rests on the committee.