The Minister of Finance and Economic Planning (MINECOFIN) John Rwangombwa has said government is set to rollout ‘Smartgov’ in order to reduce the delays in payment.
‘Smartgov’ is an on-line integrated financial management, system that eases any kind of financial transactions and auditing practices.
Rwangombwa made the remarks on Monday while meeting the members of the Private Sector Federation (PSF) during a one day dialogue at Serena Hotel in Kigali.
The remarks followed complaints that were raised recently by PSF members, who said that the delay in payment by government institutions is a serious issue affecting processes most especially at the district level.
“Sometimes the payment takes several months yet some of the suppliers use bank loans and the interest rates increase the cost of doing business” said Robert Bayigamba the Chairperson of PSF.
He added that banks are complaining that, funds which are due from districts are never paid in time and that in some instances government issue bouncing cheques.
Responding to the complaints, Rwangombwa said that the government will apply Smartgov so that the delays in payments can be resolved.
“We still have some issues at the district and the local level but after rolling out Smartgov, the delays will be dealt with,” Rwangombwa said.
At the forum, the chairperson of PSF hailed the MINECOFIN for being open when dealing with the private sector issues especially those concerning taxes. He also said PSF was glad it was involved in the entire budget preparation process.