75% OF GAUTENG SUPPLERS ARE NOT PAID ON TIME
Official figures from the Finance Department of the Gauteng Provincial Government indicate that it is currently able to meet its obligations to pay suppliers on time in only 25% of cases.
This is appalling as it means that 75% of suppliers have to wait to get their money. This is an awful strain on their cash flow. The Public Finance Management Act requires that the Provincial Government pay suppliers within 30 days, so the government is actually breaking the law.
Moreover, the government is restricting the local economy. This has a potentially devastating effect on suppliers, particularly the smaller ones, which in turn leads to more job losses, more loss of dignity and more poverty. The source of this information is the 4th quarterly report on the performance of the Department of Finance.
It indicated that the department was supposed to pay suppliers on time in 98% of all cases. They missed this target by miles. The woeful achievement of 25% was said to be because of departments not authorising or attending to web cycles on time and cash flow problems at departments [that] contribute to non-payment of suppliers. In my opinion this simply means that government staff did not do their jobs properly.
Why has this gone on for so long? It's simple. Staff are not managed properly. In a DA-controlled government this would not be allowed to happen. Staff who get paid by taxpayers and do nothing would be disciplined. Managers who cannot manage would be replaced.
Besides the economic aspect there is also the risk that suppliers will refuse to supply. In this regard, DA Gauteng Caucus Leader Jack Bloom informs me that this is starting to happen in certain hospitals. This will lead to a further deterioration in service, and in the worst cases it will lead to tragedy and death. Gauteng Premier Nomvula Mokonyane ought to be held accountable.
Statement issued by Mike Moriarty, DA MPL, June 29 2011
Click here to sign up to receive our free daily headline email newsletter
