Maintenance contracts in spotlight as Oman cracks down on spending

Ministry of Finance orders all ministries and agencies to review service contracts as oil price bites

A general view of the Muscat. (Getty Images)

A general view of the Muscat. (Getty Images)

Omani government ministries and agencies have been ordered by the Ministry of Finance to review their service contracts as the effect of the oil price continues to hit home.

According to the Times of Oman, a circular issued by the ministry said that all contracts, including cleaning and maintenance deals, would need to be revised following a large increase in costs related to these services over the past five years.

The circular stipulated that all government agencies and ministries should ask firms wishing to provide these services to provide two options: one-year and three-year contracts, each of which should indicate the exact cost. 

The newspaper also reported that another circular from the same ministry had mandated government-related entities to provide financial statements based on new projects planned for 2017, projects finished since 2012, salaries, employee benefits and various other expenses.

The second circular also states that state-owned institutions with at least 40 percent of government funding need to provide their financial statements before 21 July.

The Ministry of Finance announced in June that the Omani government had posted a budget deficit of $4.3 billion in the first quarter of 2016, a significant increase on the $1.4 billion reported in the same period a year earlier.

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