NASSAU, BAHAMAS — NASSAU, BAHAMAS — Economic Affairs Minister Michael Halkitis yesterday sought to quell scrutiny over government vendor payments, assuring the public there is “no cause for concern” even as new figures show a sharp rise in unpaid invoices and arrears.
Addressing concerns raised by the Opposition following the mid-year budget report last month, Halkitis said the issue reflects the normal cycle of government operations, where payments are made daily even as new expenses are incurred.
“Every day the government works, every day you have some vendors who are being paid and you have vendors who are rendering service that require to be paid,” he said.
He explained that the government is continuously “liquidating” its obligations, while also ensuring proper verification processes are followed before payments are made.
“A very important function of the Ministry of Finance is to make sure that when someone presents a bill, the work has been done [and] the government has gotten value for money,” Halkitis said.
Senator Halkitis also pointed to increased financial transparency under the updated Public Financial Management Act, which now requires more frequent and detailed reporting, including monthly, quarterly, and mid-year budget disclosures.
He noted that some confusion may stem from the distinction between “arrears” — overdue payments — and “outstanding” amounts, which represent recently incurred obligations that are still within normal payment timelines.
“Outstanding means you’ve rendered a service and I have to pay it. That is a snapshot at that particular time,” he said.
Halkitis maintained that the government remains committed to settling its bills promptly, adding, “We move to liquidate them as soon as possible.”
Unpaid invoices and arrears owed by the Government rose 97.6 percent year-over-year, or nearly $120 million, reaching $241.898 million at the end of 2025, the mid-year Budget disclosed yesterday. Amounts owed to suppliers, vendors, and other purveyors of goods and services had increased significantly, nearly doubling from the $122.425 million reported exactly one year earlier, on December 31, 2024.
