The President-elect's Office has expressed its disapproval of the Economic Council's decision to extend the deadlines for completing Public Sector Investment Program (PSIP) projects by an additional six months.
The Economic Council, as per a circular issued by the Finance Ministry, opted to prolong the timelines for projects already in progress, initiated before May 30, and impacted by the COVID-19 situation that began in 2020. This extension was intended to alleviate the challenges faced by contractors due to the ongoing pandemic.
Interim spokesperson, Mohamed Firzul said the decision to extend project deadlines does not align with the economic council's designated responsibilities, and the Finance Ministry lacks the authority to unilaterally extend deadlines in this manner.
Firzul cited the Public Finance Act, which stipulates provisions for extending PSIP projects. Even in cases where an extension is warranted, it necessitates a separate review of each project to ensure that contractors do not display negligence while extending the deadlines.
Firzul emphasized that no State institution has the right to act in a way that obstructs the state's welfare. He expressed concern that extending project deadlines to alleviate unidentified restrictions might prove detrimental to the state.
He argued that there has been sufficient time to complete projects that have been hindered by the COVID-19 crisis, and any hasty extensions could adversely impact the implementation of the new government's policies and result in substantial state losses.
The Finance Ministry, on the other hand, has stated that companies desiring an extension will be granted a six-month grace period, provided they comply with state finance regulations and update their contracts accordingly.
Sign In