Late payments to contractors cost govt P14m

Matambo said interest charges accounted for P8.9 million while P5.8 million was for penalties. He revealed that interest charges and penalties are paid as part of the contract sum to private contractors. Gaborone Central Member of Parliament Dumelang Saleshando had requested the minister to state the full amounts paid by government to private contractors as penalties or interest for late payments in the last three financial years.

While contractors have often been in the crossfire for completing projects late, government has in the recent past been blamed for late disbursement of payments. The latest case reported is that of a contractor who locked up government offices he had refurbished over a P39, 000 payment.