Officials must pay suppliers on time or be disciplined: Treasury
Government officials responsible for the billions of rands worth of late and non-payment of invoices by national and provincial departments need to be monitored and punished, National Treasury said on Monday.
It said that while there was an improvement in terms of the number of invoices older than 30 days there were not paid at the end of the 2021/22 financial year, there was still "a noticeable regression" in the number of invoices that were paid by national departments after 30 days.
Businesses supplying to government, especially small, medium and micro-enterprises (SMMEs), have had to contend with the late payment of invoices for years, exposing them to significant risks, such as losing out on much-needed income, debt, and even closure.
National Treasury said payment of invoices within 30 days should be included in the performance agreements of accounting officers, chief financial officers, and other relevant officials.
"Disciplinary action should be taken against officials who fail to comply with the requirements to pay invoices within 30 days and who undermine the systems of internal control be taken," Treasury said.
It said accounting officers should ensure that the information to the relevant treasury is signed off and submitted within the timeframes stipulated in the National Treasury instruction note.
Treasury said the topic of payment of suppliers within 30 days must be "a standing agenda item at all executive committee meetings of all provincial and national government departments".
"To ensure that supplier operations continue without strain and financial difficulties, government institutions are urged to pay their suppliers on time and not contribute to the dire effects of the pandemic that has already put a strain on the financial sustainability of SMMEs," Treasury said.
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