DA parliamentary questions show total collapse of state-owned enterprises under Minister Brown

It is increasingly evident that under the stewardship of the Minister of Public Enterprises, Lynne Brown, South Africa’s state-owned entities are in crisis. In a recent reply to a parliamentary question asked by Henro Kruger MP, the Minister has revealed shocking mismanagement and a complete lack of oversight at our state-owned entities.

In her reply, Brown indicated that the Department currently owes over R1.532 billion to its suppliers. Moreover, a total of 61 063 invoices have not been paid within the prescribed 30 days after an invoice has been submitted – the main culprits being Denel, Transnet and ESKOM, that owe an appalling R688 million, R728 million and R102 million respectively.

The shocking figures point to nothing other than a complete lack of oversight at National level and gross mismanagement at the entity level, both spearheaded by the Minister. This failure has a direct consequence for small businesses which deal with the Department as they are worst affected, often facing closure as a result of by late payments by government departments.

The DA will write to the Chairperson of the Public Enterprises Committee to invite Entity heads and the Department of Public Enterprises to account before the Committee for late payments and to provide concrete steps to remedy the crisis. The failure of our state-owned entities must be placed squarely at the feet of the Minister of Public Enterprises, Lynne Brown. Under her watch our state-owned entities have disintegrated due to corruption and gross mismanagement - it is now our duty to act decisively to rescue them from further ruin.

Text of reply:

DEPARTMENT: PUBLIC ENTERPRISES

REPUBLIC OF SOUTH AFRICA

NATIONAL ASSEMBLY

QUESTION FOR WRITTEN REPLY

QUESTION NO.: 3581

DATE OF PUBLICATION: 03 NOVEMBER 2017

3581. Mr M S Malatsi (DA) to ask the Minister of Public Enterprises:

(a) What is the total number of supplier invoices that currently remain unpaid by (i) her department and (ii) each entity reporting to her for more than (aa) 30 days, (bb) 60 days, (cc) 90 days and (dd) 120 days and (b) what is the total amount outstanding in each case? NW4009E

REPLY:

DPE RESPONSE

(a)(i) The Department does not have supplier invoices which currently remain unpaid for more than:

(aa) 30 days

(bb) 60 days

(cc) 90 days

(dd) 120 days

(b) Not applicable

ALEXKOR SOC LIMITED

DENEL SOC LIMITED

Please note that -

At least 30% (THIRTY PERCENTILE) of creditors are common throughout the Group; and

The same supplier may be listed for each category of ageing as they deliver at different stages.

ESKOM SOC LIMITED

(a)  As at 30 September 2017, the total number of supplier invoices that remain update at Eskom is 1337.

(aa) 183

(bb) 120

(cc) 21

(dd) 1 013

(b) The total amount outstanding is R102 305 436.72

30 Days: R81 545 467.01
60 Days: R8 284 987.34
90 Days: R4 289 571.61
120 Days: R8 185 410.76

SAFCOL SOC LIMITED

SAX SOC LIMITED

ANNEXURE ATTACHED

TRANSNET SOC LIMITED

Reply (with reference to Transnet):

As at 5 November 2017

Note:

Payments are made without unnecessary delays in line with Transnet’s procurement Procedures Manual. To this end Transnet must pay suppliers within 30 days of submission of an undisputed invoice.

Where a supplier is providing goods or serviced for an extended period of time, it is agreed that payments will be effected within 30 days of submission of a supplier statement.

Invoices more than 30 days relate to invoices to be paid within the 30 days of supplier statement date, but after the 30 days of the date on the invoice.

ENDS

Statement issued by Natasha Mazzone, DA Shadow Minister of Public Enterprises, 3 January 2017