State agencies allowed to waive fines

State agencies allowed to waive fines

State agencies can consider waiving fines for private companies that have fallen behind construction schedules due to the impact of the pandemic, says Comptroller General's Department director-general Prapas Kong-ied.

Mr Prapas said the department already sent formal letters to inform state agencies they can waive fines for contractors who have suspended construction work as a result of the Covid-19 outbreak.

However, some state agencies have been reluctant to do so over concerns that giving the contractors a waiver could put them at risk of violating related procurement rules, he said. In light of this, they went ahead and fined contractors.

The instances of state agencies fining contractors were discussed by the cabinet on July 20. The department was requested to make the issue clearer to state agencies so they can consider a waiver.

Mr Prapas said state agencies must prudently consider any waivers as some contractors might use the impact of the pandemic as an excuse. The waiver must only be given to projects that state agencies ordered to be halted due to the outbreak, he said.

Contractors representing 100,000 contracts in total would be affected by any state agency that declines to waive their fine, said Mr Prapas.

In a related matter, he said about 70% of the expenditure budget has been disbursed by state agencies in the third quarter of fiscal 2021 out of a total expenditure of 3.29 trillion baht. Disbursement of the investment budget was delayed due to the pandemic.

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