2015News

Inabie delays in payments of school suppliers

Small and big companies are feeling the brunt of delays of more than 90-days in payment for public school meals.

Investigative journalist Nuria Piera says that the problem is mostly affecting small and medium-sized companies, many of which now face bankruptcy.

The Student Welfare Institute (Inabie), a division of the Ministry of Education, is responsible for making the payments.

The government has contracted 2.4 million servings a day, or around eight billion a year. The meals are distributed through 698 suppliers of school lunches, 166 breakfast suppliers, and seven pasteurizing plants.

On her TV show, Piera said that there is no procedure for guaranteeing the logistics of the operations. Several companies that supply the meals are now seriously affected by financial difficulties caused by the delays in payments. One supplier said that last year payments flowed, but this has changed now. Some suppliers say that the delays are putting them on the verge of bankruptcy.

Inabie director Rene Jaquez says that suppliers submit their bills from 1-10 of the month and the payment should be made by the end of the month.

Watch the report on the investigative TV show at http://nuria.com.do/portfolio/suplidores-del-almuerzo-escolar-reclaman-pagos-al-inabie/