The Ministry of Mines and Minerals Development Permanent Secretary Dr. Hapenga Kabeta says that a law to compel mining firms to pay suppliers and contractors on time as has been the outcry by stakeholders, would be difficult to enforce due to various factors.
Dr. Kabeta says while the government cannot dictate a period under which mining companies should pay local suppliers and contractors, mining firms must consider paying on time to avoid fiscal challenges which might push the suppliers out of business.
Companies supplying various goods and services to the mines have complained over delays to receive payments, a situation that affects the fiscal positions of such entities, attributed to low liquidity on the Copperbelt.
However, Ministry Permanent Secretary Dr. Hapenga Kabeta says while a law compelling timely payments for goods and services in the mines would encourage such transactions, agreements between buyers and sellers in business circles should suffice without much government interference.
Source: PHOENIX NEWS
