GREAT BAY--Minister of Finance Marinka Gumbs disclosed during the continuation of the 2026 Budget debate that Government is encountering cases in which goods and services were ordered and financial commitments apparently made without the proper authorization. According to the Minister, Finance is receiving invoices that cannot simply be paid because key documents or approvals are missing.
Gumbs said some invoices are being submitted without an approved advice, signed contract, purchase order or proof that the person who made the commitment had the authority to financially bind Government. She raised the issue while responding to questions about why some vendors remain unpaid and why certain payments to civil servants, including jubilee-related payments and increases, remain outstanding despite Government reporting a positive financial position.
The Minister stressed that having the financial means available does not remove Government's responsibility to determine whether an expenditure was properly authorized and whether the required procedures were followed. She said it would be irresponsible for Government to simply pay invoices where the proper documentation and approvals are not in place.
Gumbs also clarified that while the Ministry of Finance is responsible for Government's overall financial administration and payment process, individual ministries remain responsible for supervising and accounting for the commitments and invoices connected to their respective ministries. This means ministries must ensure that what they order is properly authorized and that the necessary supporting documents are in place.
Finance, she explained, cannot on its own confirm whether every product was delivered or every service was actually performed. The ministry that requested the goods or services must confirm that delivery took place, that the work was completed and that the invoice is valid before it can move through the payment process.
This distinction is important because delays do not always begin at Finance. In some cases, the payment process is slowed because the responsible ministry has not completed the required confirmation, approval or supporting paperwork.
The Minister made clear that an instruction to a vendor, even one coming from within Government, does not automatically mean that Government was properly committed to the expenditure. This applies even where the request came from a minister, because the required financial and procurement procedures must still be followed.
Finance must be able to establish that the expenditure was authorized, that the person making the commitment had the authority to do so, that budget was available and that the necessary procurement steps were completed. Where those elements are missing, additional checks have to be carried out before public funds can be released.
Gumbs said such cases may therefore take longer to resolve, but stressed that this should not automatically be interpreted as Government lacking the money to pay. In some instances, the problem is one of governance, administration and compliance rather than cash availability.
Gumbs said Government recognized that it needed better visibility and control over outstanding commitments and invoices, which is why the procurement and payment process is being strengthened. One of the changes already being implemented is the centralized receipt and registration of vendor invoices.
Under the process outlined by the Minister, invoices are received and registered by Financial Accounting before being forwarded to the responsible ministry. That ministry must then confirm that the goods were received or the services were rendered before the invoice can move forward.
Once that confirmation is provided and all required approvals are in place, the invoice can proceed for payment. The intention is to create a clearer record of what Government owes, where an invoice is in the process and whether all required steps have been completed.
Central to the strengthened system will be the mandatory use of purchase orders. Gumbs said the Ministry of Finance will strongly promote and enforce the principle of “No PO, No Pay.”
A purchase order, commonly referred to as a PO, confirms that a Government purchase has gone through the proper authorization process, that the person placing the order was permitted to commit Government and that the necessary budget was identified. For vendors, it provides proof that the request they are acting on has been formally approved.
The Minister's message to businesses is therefore clear: obtain a valid purchase order before providing goods or services to Government. Without a PO, a business could complete work or deliver products only to later discover that the person who made the request did not have the authority to financially commit Government.
Gumbs said vendors should be able to do business with Government with confidence that, once the proper process has been followed, they will be paid. A business should not be left waiting because someone inside Government made a commitment without first completing the required procedures.
Restoring trust, she said, requires clear rules, proper authorization, confirmed budget availability and timely payment once those requirements are met. The stricter purchase-order system is intended to protect vendors while also strengthening Government's control over public spending.
For Government, the system creates clearer accountability over who has the authority to spend public money and whether that spending is tied to an approved budget. For vendors, it provides assurance before they commit their own money, staff and resources to fulfilling a Government request.
Gumbs also addressed the broader question of how Government can report positive financial performance while vendors and civil servants are still waiting on certain payments. She explained that a positive financial result does not mean operational and administrative challenges automatically disappear.
Capacity limitations, incomplete paperwork and failures to follow established procedures can still delay payments even when Government has the financial resources available. Outstanding cases therefore have to be examined individually to determine what is holding up the payment.
The same broader administrative and operational challenges can also affect the timely processing of payments and entitlements involving civil servants. Gumbs' position is that delays should not immediately be taken as evidence that Government does not have the financial means to meet the obligation.
The Minister also cautioned against viewing a new Enterprise Resource Planning, or ERP, system as a complete solution to Government's payment problems. Better technology can improve tracking, financial controls and the processing of commitments, but it cannot replace proper procedures and accountability.
Gumbs said Government also needs discipline within the individual ministries, with officials following the rules, ministries properly supervising their commitments and invoices, and only authorized persons being allowed to make financial commitments on behalf of Government.
The broader objective is to create a system in which Government spending is properly authorized from the beginning, invoices can move through the process without unnecessary delays and vendors know exactly what is required before they provide goods or services. For businesses, the immediate practical message from Finance remains straightforward: before doing the work, get the approved purchase order.
