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Contractors have not received a penny from gov’t yet — syndicate

Authorities said last month they would pay outstanding dues

By Laila Azzeh - Dec 15,2016 - Last updated at Dec 15,2016

AMMAN – Despite the government’s decision last month to provide JD55 million to the Ministry of Public Works and Housing to pay its outstanding dues to contractors, nothing has been paid to Jordanian Construction Contractors Association to date. 

According to the association’s president, Wael Toukan, the sum was agreed to be paid at the beginning of November after the Cabinet met and decided to resolve the issue.

“Until now, we have not received a penny from the Public Works Ministry, which alone owes us JD26 million. I am scheduled to meet Public Works Minister Sami Halaseh on Sunday and decide on our next move,” Toukan told The Jordan Times on Thursday. 

In October, the association 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, the association noted that the sector is suffering “immensely” from the government’s delay in paying its dues.

In previous remarks, Toukan said Jordanian companies and contractors are paying millions of dinars and hiring thousands of workers to implement projects, noting that the sector has been suffering for months because it has not received its financial dues for projects that have already been implemented.

“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 said.

 

The Jordan Times could not reach officials at the Public Works and Housing Ministry, but in a previous interview, Halaseh said the Finance Ministry is responsible for the payment and voiced hope that the issue would be resolved due to the importance of the contractors in supporting the national economy.

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