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The phenomenon of late payments by large companies to their partners and suppliers was discussed on Tuesday by the parliamentary Trade Committee.
Committee members found that the legislation is not being enforced,[/B] and that there is a need for the executive to strengthen it so that there are more effective controls.
The President of the Commission, Kyriakos Hatzigiannis, referred to "a very dangerous phenomenon, a very dangerous and wrong practice", which, he said, "if it continues, the 2011-2012 phenomenon will be repeated."
As Mr. Hatzigiannis, "the existing laws, which exist and provide the framework within which payments should be completed, should definitely be properly and effectively supervised by the state."
According to Kyriakos Hatzigiannis, "basically while there is legislation, there is no supervision mechanism", noting that there is a need for the executive to strengthen it, so that there are more effective controls and to prevent the emergence and creation of a bubble in the market, as has happened in the past.
He also said that "while many of the operators have said that the problem is not that big, I want to say that the complaints, our observations, the reports that come to us clearly indicate that in some areas things are very tragic," to add that there and where there is a problem in operations or sales, that is where payment starts to become very problematic.
Hatzigiannis pointed out that there is a need to strengthen the role and operation of existing services, saying that if possible, the Consumer Service could be strengthened with the obligation to make comments.
He even suggested strengthening other services, such as the Tax Department.
"It is not possible for a state service, which is essentially responsible for collecting money, when and if it notes that there is a violation of other legislation, not to be able to intervene. Currently in the law, yes, unfortunately there is this loophole," he said.
In addition, he said that "there is a possibility of correcting the system", as well as the possibility of introducing provisions to assist in collection, as provided for in the contracts.
AKEL MP Kostas Kostas said his party noted non-implementation of the 2012 law on combating late payments, resulting in long delays in payments for a period sometimes up to six months.
"This," he said, "has resulted in the strangulation of creditors, especially suppliers with small turnover."
He added that some debtors, in order to reduce the credit period, are blackmailing for an additional discount."
Finally, he said that "all responsibility for implementing the laws and fighting obscenity and illegality lies with the government."
Source: CNA
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