Why the delay in payments?

Salameh daraawi
Salameh Darawi (Photo: Jordan News)
I completely understand that the government puts off some due liabilities to the private sector until the endorsement of the budget law, since enterprises are tied to official provisions of ministries; such as the Ministry of Public Works and the Ministry of Health, among others. اضافة اعلان

These ministries and others float tenders for implementation, and the companies that win these tenders are not compensated immediately, but are delayed until public funds are available.

Nevertheless, I cannot understand why the Civil Consumer Corporation puts off the private sector dues for a long duration, reaching 6-7 months, while the latter provides it with products and services reaching millions of dinars.

This causes the private sector incur massive financial burdens, since it sets its production requirements, including financial plans, banking facilitations and liabilities towards suppliers, according to liquidity and its timely delivery.

The Civil Consumer Corporation is not a typical neighborhood or village shop that records customers’ debts in a ledger.  It sells directly to all consumers, deals in cash, and does not lend any one; so why is the delay?

Some might say that the Civil Consumer Corporation does not have a cash flow ready for payment, while in fact it operates on direct sales, which are growing rapidly each month. This means that the corporation has uninterrupted liquidity, and the delay is not justifiable.

Some might also say that the corporation takes advantage of the cash flow to make revenues bank deposit interest. If that is the case, then it is completely unacceptable, for many reasons, including the violation of the main purpose of the Civil Consumer Corporation.

Highly successful national companies also suffer severely from the Civil Consumer Corporation’s long delays in paying its liabilities, due to the financial pressures resulting from the lack liquidity, at a time when these companies need each dime to pay salaries, loans, insurance, taxes, customs and other fees which burden the private sector.

Other dealers with the Civil Consumer Corporation also suffer severely, not only from the delay of payment, but also from the huge discounts and offers they give the corporation.  Some dealers went as far as describing it as mandatory conscription, since it is not profitable, and some really enter the losses curve due to the delay.

The Civil Consumer Corporation is highly important, as it houses large quantities of locally-produced goods in its multiple locations across the Kingdom. Nevertheless, this should serve as a green light to abuse the private sector’s needs and use its official political power on the expense of suppliers’ demands.

The relationship between the corporation and suppliers must work on the grounds of partnership, knowing that it cannot import a single thing or provide special prices for consumers without the suppliers’ support, unless the government wants to subsidize goods from the Treasury, the times of which are long gone.

A balanced relationship must be established between the corporation and the private sector to adequately support the continuation of both, without encroaching on any rights.

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