Press Release
11 October 2018 - 5:44pm

Financial Secretary, Mr. Glenroy A. Forbes is reminding vendors that all Government purchases for goods and services must be done via a Local Purchase Order (LPO) or a contract agreement.

Mr. Forbes said that this is in accordance with the Public Finance Management Regulations (PFMR), 2005 Section 172 and that the LPOs should comply with established policies and procedures issued by the Ministry of Finance and the Treasury Department.

The act states that purchase of goods locally shall be made by a local purchase order signed by an Accounting Officer or an officer authorised by the Accounting Officer to sign local purchase order.           

“I want to be explicitly clear that without a valid LPO issued by the Government or a signed contract, payment is not guaranteed”, the Financial Secretary said.

Mr. Forbes noted that Accounting Officers and Heads of Department were advised to solicit competitive bids or quotes from a minimum of two qualified and reputable vendors. This directive, he added, is in line with the requirements outlined in Section 172 of the PFMR.

The Financial Secretary further stated that the acceptance of an LPO forms a binding agreement with the seller to supply a good or perform a service, in return for which the Government agrees to pay the supplier’s invoice after the good or service is delivered.

Merchants are urged to report on any instance where Public Officers or officials attempted to obtain goods or services contrary to the requirements.

The Ministry of Finance remains committed to efficient financial management and public accountability. 

Author

Sheriece Smith

Information Officer I 
Dept. of Information & Public Relations 
Telephone: 468- 2740
Email:    shersmith@gov.vg

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