Government making strides in the payment of suppliers within 30 days
Minister in the Presidency responsible for Planning, Monitoring and Evaluation and Chairperson of the National Planning Commission, Jeff Radebe hosted a community radio phone in programme on Thursday, 10 August 2017 to share the strides that government has made in the payment of suppliers of government services within 30 days.
The community radio phone in programme hosted by the Government Communication and Information System (GCIS) connected 65 community radio stations for an hour and thirty minutes. During the programme the Minister interacted with listeners from various provinces who raised issues related to government support to small business as well processes required for conducting business with government.
Minister Radebe said to the listeners, “Government is keen on helping the small black businesses, all service providers who wish to do business with government need to adhere to all relevant policies. The late payment of service providers places them in financial distress and grave jeopardy”.
In 2011, the Department of Planning, Monitoring and Evaluation (DPME) established a special unit that works in a trilateral partnership with National Treasury and the Department of Public Service and Administration (DPSA) to investigate cases where there is late or non-payment of legitimate invoices within 30 days.
The unit also identifies the causes for delays and non-payment in aforementioned cases, facilitate the process for instituting misconduct proceedings to ensure that there are consequences for late and non-payment of legitimate invoices and support intervene in cases of continuous non- compliance.
Payment of service providers or suppliers within 30-days is a key priority monitored by government from as way back as 2009.Since 2011, the current administration has included a requirement for all Directors-General (DGs) to report to the Forum of South African Directors-General (FOSAD) on the timeous payment of suppliers.
Outcome 12 Chapter of the 2014-2019 Medium Term Strategic Framework, (MTSF) which is government’s comprehensive plan for implementing the National Development Plan (NDP) and serves as the principal guide to the planning and the allocation of resources across all spheres of government also reports, amongst others, on the performance of departments in relation to compliance with 30 days payment of invoices.
As at March 2017 progress registered at national departments indicates the number of legitimate invoices paid after 30 days were 17 113 to the value of R1.3 billion. During March 2016, the number of invoices paid after 30 days was 14 741 to the value of R503 million. This shows an increase in both the number of invoices and the value thereof over the year.
As at March 2017, the total number of invoices paid after 30 days was 15 754 to the value of R1.1 billion at a provincial level. In March 2016, the number of invoices paid after 30 days by provincial departments was at 33 776 to the value of R4.2 billion. Therefore, the number of invoices as well as the values over the year has significantly decreased. Outstanding and not paid invoices are R5.3 billion
Overall there are challenges of invoices older than 30 days and unpaid is concentrated in few departments. This is also a demonstration of the fact that there are pockets of excellence where good practice exists in relation to payment of suppliers.
In concluding the program, the Minister emphasized that, suppliers should ensure that their invoices valid and that they are issued with appointment letters, purchase orders and other relevant documents that are issued when a supplier is appointed to provide a service.
Suppliers who have queries on legitimate unpaid invoices can lodge a query to the email address: 30daypayment@dpme.gov.za or to call the Presidential Hotline on 17737.
Enquiries:
Tshegofatso Modubu
Cell: 083 276 0786
Tshegofatso.Modubu@dpme.gov.za
Mmabatho Ramompi
Cell: 076 480 3513
E-mail: Mmabatho.Ramompi@dpme.gov.za
Follow the conversation on: #NDP2030 #30daypayment
