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Contractors appeal to PM over gov’t payment delays

Association says payments overdue for projects worth over JD100m

By Laila Azzeh - Oct 26,2016 - Last updated at Oct 26,2016

AMMAN — The Jordanian Construction Contractors Association (JCCA) on Wednesday appealed to Prime Minister Hani Mulki to “swiftly intervene” to address the government’s delay in paying outstanding bills to  contractors. 

In the appeal, published in Al Rai Arabic daily on Wednesday, the association noted that the sector is suffering “immensely” from the government’s delay in paying its dues. 

“Jordanian companies and contractors are paying millions of dinars and hiring thousands of workers to implement schemes. Government tenders should be linked to available financial allocations,” JCCA President Wael Toukan told The Jordan Times on Wednesday.

The sector has been suffering for months because it has not received its financial dues for projects that are already being implemented, Toukan said. 

“The projects are worth more than JD100 million,” he noted, adding that half were commissioned by the Ministry of Public Works and Housing while the rest were from other government agencies.  

The government’s delay in paying the sector has affected contractors’ abilities to spend money on projects, pay salaries and meet their own obligations to banks, suppliers and the Social Security Corporation, Toukan added.  

“And thus, some companies have already halted their operations and laid off huge numbers of workers,” he said, adding that this would eventually lead to postponing or cancelling projects. 

“Such moves would prevent the local community from benefiting from the aspired development in services,” the contractor highlighted. 

Toukan noted that the association had tried to reach out to the concerned authorities to address the issue.

“No action was taken. We are planning to take escalatory measures,” he said, noting that a protest will be held outside the Public Works Ministry on Sunday. 

Meanwhile, Public Works Minister Sami Halaseh said the ministry owes the JCCA about JD45 million and that the Finance Ministry is responsible for the payments. 

“We hope that the Finance Ministry resolves the issue soon,” he told The Jordan Times, stressing the importance of the contractors in supporting the national economy. 

Finance Ministry officials were unavailable for comment despite several attempts to reach them.

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