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Govt making headway on supplier payments

Govt making headway on supplier payments

Photo by Bloomberg

17th April 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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Despite making progress in the payment of suppliers within 30 days of receipt of a legitimate invoice, some government departments still face challenges in making on-time payments to suppliers.

Government outlined in a post-Cabinet meeting statement, on Friday, that a comparative analysis of all national departments between January to October 2013 and January to October 2014 showed an improvement of 39% on the average number of invoices paid within 30 days and a 32% improvement on the average number of invoices that were paid after the 30 days.

National departments reported that 155 572 invoices, worth R3.8-billion, had been paid after 30 days, while 62 887 invoices, worth R2.1-billion, that were older than 30 days, had not been paid. 

Provincial departments for the same period revealed a marginal improvement of 5% in the average number of invoices paid within 30 days.

Provinces reported that 241 332 invoices, worth R13.4-billion, had been paid after 30 days, while 356 079 invoices, worth R21.8-billion, that were older than 30 days, had not been paid.
This was a 52% regression in the average number of invoices that were older than 30 days and which had not been paid.

To assist departments that were still struggling, Cabinet approved the establishment of a special unit within the Department for Planning, Monitoring and Evaluation, to follow up with persistently struggling departments.

The unit would work collaboratively with National Treasury and the Department of Public Service and Administration.

In addition, details of a national hotline would be publicised that would enable suppliers to log instances of delayed payment. This would be taken up with the relevant department and responses would be reported on.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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