The Presidency, with 331 unpaid invoices, was among several government departments with invoices from service providers that were older than 30 days and had not been paid as at June 2016.
This despite Deputy Minister in the Presidency responsible for Planning, Monitoring and Evaluation, Buti Manamela, saying earlier this week that a failure to pay invoices within 30 days represents financial misconduct.
According to the Democratic Alliance, the worst of the defaulters is the Department of Public Works with 10,757 unpaid invoices out of the total of 12,870 invoices for the 40 government departments.
The other poor performers in this category were Justice and Constitutional Development (1,088), Home Affairs (375) and Water and Sanitation (151).
Members of the Portfolio Committee on Public Service and Administration as well as Planning, Monitoring and Evaluation were told during a briefing this week that there had been a sharp rise in May 2016 when 20,948 invoices were paid after 30 days.
There was a slight improvement in June 2016 when a total of 17,668 invoices were paid after 30 days, the DA said, however, the rand value of the invoices not paid within 30 days remained at a very high R340 million in June 2016.
The DPME reported that the main transgressors include:
- Department of Defence – 10,719 invoices paid after 30 days,
- Public Works/PMTE (1,601)
- Home Affairs (963)
- Water and Sanitation (784)
- Rural Development (667)
- IPID (606)
- Office of the Chief Justice and Judicial Administration (517)
During the first quarter of 2016/17 seventeen of the 40 government departments showed a downward trend of non-compliance with the 30 days payment rule.
“The failure by government departments to pay service providers within the 30-day prescribed period has led to the collapse of some small, micro and medium enterprises who are no longer able to keep afloat. Bigger companies have been negatively impacted by this failure leading to the retrenchment of workers, and increasing unemployment in an already tough economic climate,” the DA said.
Source: Business Tech