Government departments could lose petrol cards due to R370m vehicle fleet debt

The National Prosecuting Authority and Office of the Chief Justice are among 90 national and provincial government departments that owe R370 million to a company that provides them with vehicles.

And unless they pay up promptly‚ their petrol cards will be suspended.

Details about the millions of rands owed to G-Fleet Management emerged when the Gauteng Provincial Roads and Transport Department briefed the provincial transport portfolio committee on Friday.

G-Fleet is a trading entity of the Gauteng Department of Roads and Transport and is described on their website as a "a provider of vehicle leasing and fleet management services for the public sector in South Africa".

They operate a fleet of approximately 7094 vehicles across the country.

G-Fleet’s acting CEO Noxolo Maninjwa revealed to committee members that letters of demand had been sent to some departments‚ asking them to settle their bills before March 20.

The Gauteng Department of Health owed more than R109 million as of February 28. The office of the Chief Justice owed R71 million‚ Home Affairs owed R71 million‚ Gauteng’s Department of Infrastructure and Development owed R12 million and the National Prosecuting Authority (NPA) owed R11 million‚ according to the debtors list.

"We've been in constant discussion with the service provider that is managing the fuel cards for us and said … if a [client] has not paid us for at least more than 60 days - which is beyond the thirty day period – (can’t we) begin to terminate or suspend the services that we are providing‚" said Maninjwa.

"Where we rendered a service‚ [we] should be expecting to be paid within 30 days of invoicing that particular client. Now that has not been happening."

She said that failure to settle the accounts would lead to a "suspension of fuel card services". Departments would‚ in addition‚ be billed a fee for re-activating fuel cards.

However‚ some departments have disputed what they owe saying that payments had already been made to reduce their debts.

The office of the Chief Justice told TMG Digital that their R71 million debt had been partially settled and the full amount would be paid by the end of March.

"According to our records the outstanding amount is R26 399 256. The invoice... will be verified and settled before 31 March 2017‚" said spokesman Nathi Mncube.

He was confident that petrol cards would not be suspended.

The NPA’s Luvuyo Mfaku said‚ "The NPA's account with G-Fleet is up to date as from 8 March 2017".

Gauteng health department spokesman Prince Hamnca said in a text message: "According to our records the department is owing G-Fleet an amount of R74 million for use of … vehicles including fuel. The department has issued a payment plan to G-Fleet to settle the amount owed to them over a two month period with effect from April 2017".

Home Affairs spokesman Mayihlome Tshwete said the department owed far less. "Our records indicate that the department of Home Affairs owes G- Fleet only R38 million and the debt is for prior years when we decentralized functions to provinces. According to our records‚ for the current financial year we are up to date‚" said Tshwete.

"In certain instances‚ there are cars that were written off in accidents and G-Fleet has not taken them off their records and they are still charging the department‚" he said.

The Gauteng department of Infrastructure and Development's spokesman Theo Nkonki did not answer emailed questions sent on Friday.

- TMG Digital