Oversight tightened on Govt contracts – Finance Minister

…warns of penalties for non-compliance

Senior Minister in the Office of the President with Responsibility for Finance, Dr Ashni Singh, on Tuesday convened a follow-up meeting with Regional Executive Officers (REOs), Permanent Secretaries (PS) and other Government accounting officers to reinforce stricter accountability measures for contractors executing Government projects and services.
Providing details of the engagement in a video statement, Dr Singh said the discussions focused heavily on tighter contract management and improved oversight of contractors responsible for supplying goods and services to the Government.
According to the Finance Minister, accounting officers were reminded that all contracts must be executed strictly in accordance with agreed terms, including the quantity, quality and timelines specified in the contracts.

“The first is the Cabinet’s expectations that all contracts for the provision of goods and services to Government will be implemented to the letter of the contract – and by that I mean that the goods and services that are contracted to be supplied will be supplied at the quantity indicated in the contract, and the quality indicated in the contract, and within the timeline specified by the contract – and that message was reinforced, and we had a considerable discussion on wrong measures to ensure full start of contractual obligations by those persons contracted by Government to provide goods and services,” Dr Singh noted.
He explained that significant emphasis was placed on ensuring contractors meet agreed deadlines, noting that PS were instructed to actively enforce contractual timelines. Dr Singh further stated that where contractors fail to complete works or deliver services within the agreed timeframe, accounting officers were directed to impose liquidated damages, a financial penalty commonly included in Government contracts for delays.
“The Government expects timely implementation of contracts. Meaning every contract has a timeline or deadline by which the services are to be supplied… All instructions are very clear that those contracted timelines must be honoured. The PSs in this regard were instructed to ensure compliance with contractual timelines.

Where contracted timelines are exceeded, the PS were instructed to ensure the imposition of liquidated damages,” Dr Singh noted.
He added that if contractors continue to default even after liquidated damages are applied, immediate steps should be taken to terminate those contracts. He stressed that the Government’s expectation is that non-performing contractors be removed where necessary.
The Finance Minister also underscored the importance of performance bonds, which are financial guarantees intended to protect the Government in cases where contractors fail to fulfil contractual obligations.
He warned that accounting officers must ensure those performance bonds remain valid throughout the duration of contracts and are not allowed to expire before obligations are completed.
Additionally, Singh announced stricter controls over contract variations and the use of contingencies within contracts. He said accounting officers were instructed that contingencies should no longer be used to create flexibility in contractual pricing without approval.
Under the revised approach, any variation to an agreed contract price must be returned to the original approving authority for review and authorisation.
Singh said the measures form part of a broader administrative framework aimed at ensuring contractors deliver projects and services efficiently and on time while improving the overall quality of services provided to citizens.
“Together, these measures constitute a comprehensive set of arrangements that have one objective in mind: that the citizens of Guyana get goods and services in a more timely manner from contractors who provide goods and services to the Government,” he said.
The meeting followed an engagement last Wednesday led by President Dr Irfaan Ali, where incoming REOs, PS, officials from the National Procurement and Tender Administration Board (NPTAB), and accounting officers from all administrative regions were urged to strengthen transparency, accountability and fiscal discipline across the public sector.
During that earlier meeting, President Ali stressed that public office carries a “sacred trust” and emphasised that all public spending must directly benefit citizens and contribute to national development. He also highlighted the Government’s intention to use technology, including artificial intelligence, to improve oversight of procurement systems, detect irregularities and enhance efficiency in the management of public contracts.
The Head of State warned that breaches of procurement and financial regulations, including improper involvement with multiple companies, could result in severe penalties, including dismissal from office.