A FOREIGN investor in the country has suggested that in order for Solomon Islands Government (SIG) to avoid ghost companies, mediated in the awarding of contract jobs is to stop the advance payment system.
Speaking to the Solomon Star, the investor, who asked not to be named, said he had noticed that the system practised by the government in allowing bid winners of contracts to receive advance payment to buy materials, before the job starts, must stop.
“This is the system that allows ghost companies and middlemen to intervene in the process of awarding contract jobs to genuine suppliers,” he said.
“If we are serious about addressing this corruption practise, the advanced payment system by the Ministry of Finance and Treasury (MoFT) to contractors before the job starts must stop,” he pointed out.
The Opposition recently revealed that millions of dollars were embezzled by the so called ghost companies from the government purse, through filthy networking of middle men, with some public servants.
The investor said government must not allow any contractor to advance the payment of any contract being awarded to them, until they completed their job or provide the service demanded by the government.
“By taking this approach it will keep out ghost companies or middlemen and ensures genuine suppliers are being dealt with when government issued out contract jobs,” he stressed.
The investor who had been here for more than a decade now said this advance payment system attract middlemen to continue mediate in decision making by responsible authorities that deals with awarding of contracts and disbursement of funds.
“Once government is pondering on how to address this problem then probably stopping advance payment could be the first step to avoid ghost companies,” he concluded.
By AATAI JOHN