HARARE — Treasury has drawn a firm line against the growing practice of Government suppliers and contractors engaging consultancy firms, agents and other intermediaries to pursue outstanding payments, signalling a broader effort to bring greater control and accountability to the management of public financial obligations.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said some suppliers owed money for goods and services delivered to Government ministries, departments and agencies (MDAs) were engaging third parties to recover their outstanding payments in exchange for fees or a percentage of the amounts due.
Treasury said such arrangements were not authorised and that Government would not recognise any financial obligations arising from them.
The directive effectively means that a legitimate Government debt does not automatically create a legitimate claim for an intermediary involved in its recovery. Any consultancy fees, commissions or associated charges arising from private agreements between creditors and third parties will remain the responsibility of the creditors themselves.
“Treasury wishes to clearly advise all Government creditors that they should not engage any third-party intermediaries or so-called consultancy firms to pursue Government outstanding payments to service providers and contractors,” Prof Ncube said.
The position has an important public-finance dimension. Government payment obligations are subject to verification, budgetary processes and cashflow management, meaning the introduction of external agents into the process can create additional claims around an obligation that Treasury itself must first verify and settle.
By refusing to recognise such additional costs, Treasury is effectively protecting the original value of Government liabilities from being inflated by private arrangements entered into by creditors.
The directive also reinforces the principle that payment administration remains an institutional responsibility. Treasury instructed MDAs not to entertain claims submitted by consultancy firms or other third parties claiming to represent Government creditors in recovering or facilitating payment of arrears.
Creditors have instead been directed to approach the respective contracting MDA and follow established procedures for the verification, processing and settlement of legitimate claims.
This places greater emphasis on the formal documentation and verification of Government debts, particularly in circumstances where multiple parties could otherwise claim an interest in a payment.
Treasury has also cautioned Government officials against engaging suppliers or contractors outside the established channels in relation to payment follow-ups, effectively seeking to ensure that arrears are handled through a consistent administrative process rather than through informal approaches.
The warning extends to holders of Treasury Bills, with Treasury advising against engaging third parties to pursue payment of matured instruments or seek their liquidation. The Ministry maintained that Treasury Bills should not be discounted outside established arrangements, noting that their maturity profiles are determined in line with Government cashflows.
The broader economic significance of the directive lies in Treasury’s attempt to maintain a clear distinction between a Government creditor’s legitimate claim and any private commercial arrangement subsequently attached to that claim.
For businesses supplying Government, the message is therefore straightforward: an outstanding payment remains a matter between the creditor, the contracting Government institution and Treasury’s established payment systems. The use of an intermediary does not transfer responsibility for that arrangement to the State.
“The business community is further advised that no consultancy firm, agent or other third party has the authority or mandate to facilitate, guarantee or secure payment of funds owed by Government,” Treasury said.
The measure could also discourage a parallel market in Government payment facilitation, where intermediaries potentially earn commissions simply by accessing or navigating payment processes on behalf of creditors.
For Government, maintaining a controlled payment system is important not only for expenditure management but also for ensuring that public funds are directed towards verified contractual obligations rather than additional charges generated through private recovery arrangements.
Treasury’s position consequently puts the onus squarely on suppliers and contractors to use official channels, maintain proper documentation and pursue their claims directly through the MDAs with which they contracted.
The message from Treasury is ultimately one of financial discipline: legitimate Government obligations will be processed through legitimate Government procedures, while costs created through unauthorised third-party arrangements will not become an additional burden on the public purse.
