Payment to Suppliers; Assessment of Efficient Public Service Delivery in the Local Government

Abstract

Late payment to suppliers is an interminable issue of the past yet still exists in this present era of a digitalized and automated world. And the government is expected to take action in clashing this issue. In effect, prompt and timely payment to suppliers in the government organization is vital for business operation and sustainability of a local enterprise. Thus, this study instituted that payment to suppliers is a public service that demands efficiency and effectiveness from the procuring entities. This study aimed to assess the payment situation in the Provincial Government of the Davao Region and identify the root causes attributed to the delay. The sequential explanatory method is used in investigating 150 payment claims that were processed from October 1, 2018, to March 31, 2020, followed by probing 14 informants and participants from the group of employees and suppliers involved in the process. The results divulged that the province processed and paid suppliers within an average of 122 days, or 77 days late. The impeding factors emerging from the analysis are the organizational silo, employees' competencies, operational system and policy, administrative lapses, and the organization's culture. As such, this study recommends the following measures; alignment of the payment process procedures, strengthening the human resources, and exemplifying sound leadership.