* Peter Hancock at Capitol News Illinois…
A program that helps vendors get paid even when the state is late paying its bills might be in danger, the head of one financial company said, because of the way Illinois Comptroller Susana Mendoza is prioritizing the bills that she does pay.
The program is called the Vendor Payment Program and it allows third-party financial companies, known as “qualified purchasers,” to buy the debts owed to state vendors and then collect the late interest penalty owed whenever the state does pay the bill.
The problem, said Andrew Greta, president of Illinois Financial Partners, one of the program’s participating companies, is that Mendoza’s office has put a priority on paying off the principal owed on invoices so they stop accruing interest. But she only rarely, and sporadically, makes payments on the interest that is already due.
“They have been few and far between,” Greta said of the interest payments during an interview Friday.
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