The government of Cameroon has ordered that all state purchases, including those made by local authorities and state-run entities, must be invoiced at market value.
The order aims to curb corruption through mis-invoicing and is motivated by a series of government contracts that have been over-invoiced, with suppliers and public servants siphoning off some of the excess profits.
Market price requirement
Finance ministry instructions for executing the 2020 budget say state purchases must be based on “the market price list and the quantity of products whose reference prices and tariffs for equipment, supplies and various services intended for public administrations are set by order of the minister in charge of prices.”
The order applies to all purchases except for competitive tenders where the price is as described in the financial offer of the successful tenderer.
The finance ministry says it will provide a list of market prices approved by the administration.
Purchasing officers must adhere to the prices on the list and if they fail to do so, then they will be held personally liable “in the event of over-invoicing”.
The finance ministry is reportedly most concerned about corruption involving government officials and contractors in construction projects.
Categories: Trade Based Financial crimes News