The Department of Water and Sanitation announced today that the payment of suppliers within 30 days now stands at 95% and more will be done to reach 100% payment on time. On average, the department pays R1billion to service providers per month.
The Department disclosed this today before the Parliament’s Portfolio Committee on Water and Sanitation where the department presented its quarter four performance results. The department overspent by 1%, exceeding the budget by R110 million at end of quarter 4 of 2016/17 financial year. The overspending in the allocated can be attributed to drought relief measures as well as Bucket Eradication Programme (BEP).
Acting Director-General of the Department, Mr Sifiso Mkhize said the sanitation challenges in the country are pressing and hence the department went over-budget.
“Sanitation speaks to dignity of all South Africans and as part of Sustainable Development Goals we continually strive to make sure that dignified sanitation is progressively extended to all South Africans”, he said.
Mkhize further insisted that bucket eradication must not be seen in isolation, but also as an investment in infrastructure development with long term sustainability for benefit of future generations.
As a Water Trading Entity (WTE), the department is charged with collection, treating and sale of water to bulk users including industries, municipalities amongst others. The department expressed concerns at the slow rate and at times non-payment of water purchased by bulk users. The department is owed around R2 billion in outstanding payments.
“This amount is very high and it is very concerning that the bulk users do not prioritise the payment of water used. This non-payment affects our cash flows and impedes infrastructure
investments which are need for new facilities and for maintenance of old news. The users must pay, and we appeal to them to do so urgently”, said Mkhize.
In addition, the Department has committed to strengthen its supply chain processes to ensure that all procurement processes are done correctly and according to the book.
For more information contact:
Sputnik Ratau
Cell: 082 874 2942
E-mail: RatauS@dws.gov.za
