The amendment made to the Public Finance Regulations in 2020 has now been changed to provide leniency to state-owned enterprises in acquiring advance funds to carry out projects.
According to the amendment gazetted yesterday, funds can be disbursed in advance for some projects of state-owned companies with the permission of the Finance Minister, without the need for a guarantee. The appeal was made after the issuance of advance funds was made stricter.
According to the amendment, advance funds can only be disbursed to government public services, to temporarily fund capital expenditure, and to spend without having an account at MMA. Advance funds will also be disbursed for government office expenses incurred abroad as well.
Prior to this amendment, if the money is released in advance of the project, a payment guarantee must be obtained for the project. The payment guarantee must be issued by a financial institution approved by the authorities.
The rules for issuing advance payments for public finance regulations had been tightened in 2020 when the procurement of ventilators was carried out to the detriment of the state. At that time, a performance guarantee was necessary, but advance funds were released for the ventilators in contradiction to the regulations.
