Gauteng Provincial Government is second worst in the country for not paying suppliers in 30 days

18 February 2020

The Gauteng Provincial Government is the second highest in the country for not paying suppliers within 30 days, with the Eastern Cape in first position. The amount owed by these two provinces is even higher than the amount owed by the National Departments combined.

This shocking information was revealed by the Public Service Commission (PSC) in a presentation to the Gauteng Provincial Legislature’s (GPL) Finance Portfolio Committee.

According to the PSC, in October 2019, Gauteng had 19,259 unpaid invoices older than 30 days with a value of R1 299 770 136,00. In November this increased to 19,997 and a value of R1 277 016 118,00 and in December, the number escalated to 20911 and had a value of R1 413 754 979,00.

The Gauteng Health Department is the number one offender in the province with 195,974 invoices older than 30 days; these have a total value of R13 337 443 961,00.

The Department of Infrastructure Development is the second worst offender with 1,574 invoices older than 30 days with a value of R864 852 029,00 and is followed by the Department of Social Development with 231 invoices older than 30 days with a value of R3 328 866,00.

The Department of Human Settlements has 132 invoices older than 30 days not paid, the Department of Education has 60, the Department of Sports, Arts, Culture and Recreation has 30 and the Department of Community Safety has 28 invoices older than 30 days not paid.

In many cases, departments do not monitor their payment processes effectively, and fraud and corruption has resulted in late or non-payment of service providers.

It is unacceptable for the Gauteng Provincial Government not to pay its suppliers within 30 days.

In terms of the Public Finance Management Act (PFMA), government departments are obliged to pay suppliers within 30 days of receipt of invoice – but adherence to this, particularly by the Gauteng Provincial Government, has been lacking for years despite PSC’s numerous engagements with the executives within various departments.

Gauteng as the economic hub of the country must lead by example in ensuring that it grows the province’s economy through paying suppliers within 30 days.

Failure to pay suppliers within 30 days is literally killing small businesses particularly in the townships. These enterprises are struggling to survive due to non-payment by government departments.

The DA will hold Gauteng MEC for Finance, Nomantu Nkomo-Ralehoko and Premier David Makhura accountable to ensure that they engage with all departments to adhere to the 30 day payment of suppliers.

Where the DA governs in the Western Cape, we pay all our suppliers within 30 days. Its high time that the ANC-led Gauteng administration duplicates what the DA is doing successfully in the Western Cape.

Issued by Adriana Randall, DA Gauteng Shadow MEC for Finance and e-Government, 18 February 2020