The Public Service Commission (PSC) has highlighted the ongoing struggle of government departments to pay invoices within the required 30-day period.
According to the PSC, in the third quarter of the 2024/25 financial year, more than 38,000 invoices amounting to R1bn were paid late, with nearly 5,000 invoices valued at R422m still outstanding.
PSC commissioner Anele Gxoyiya cited the department of defence as the worst offender, as it failed to pay suppliers on time for the third consecutive quarter. He said their invoice value amounted to more than R456m.
“That is the problem, and you can imagine what happens to those businesses when they deliver services and do not get paid. The number of invoices older than 30 days and not paid by national departments at the end of the quarter was 4,993 with an approximate value of R422m. That's the pain that our small businesses are experiencing,” he said.
He noted that the defence department was also the highest culprit during the first and second quarters, with an average of 61% and 80% respectively of the total number of invoices paid after 30 days by national departments.
He has appealed to the department of defence to improve.
Gxoyiya was briefing the media and providing updates on the nonpayment of suppliers, fiscal consolidation and whistle-blower protection.
He emphasised the importance of whistle-blower protection, after concerns raised at the 2022 International Anti-Corruption Day.
“The hosting of the whistle-blower's symposium highlighted the challenges regarding the protection of whistle-blowers and their families in South Africa. The protection of whistle-blowers was identified as one of the high priority areas in the national anti-corruption agenda.”
“During the symposium, a resolution was made for the establishment of a whistle-blower protection house to support whistle-blowers and facilitate access to support ... and to provide financial assistance, legal counsel and psychological support. The establishment of this important initiative will require the amendment of the current legislation. The department of justice and constitutional development is at an advanced stage in reviewing the Protected Disclosures Act,” he said.
On fiscal matters, the PSC has acknowledged government's efforts to contain costs but warned against excessive budget cuts that could affect essential services.
While cost-saving measures, such as reducing non-essential travel and minimising the use of consultants have been implemented, the PSC stressed the need for balance to prevent harm to healthcare, education and service delivery.
TimesLIVE
PSC laments government departments’ failure to pay service providers within 30 days
Image: Siyabulela Duda
The Public Service Commission (PSC) has highlighted the ongoing struggle of government departments to pay invoices within the required 30-day period.
According to the PSC, in the third quarter of the 2024/25 financial year, more than 38,000 invoices amounting to R1bn were paid late, with nearly 5,000 invoices valued at R422m still outstanding.
PSC commissioner Anele Gxoyiya cited the department of defence as the worst offender, as it failed to pay suppliers on time for the third consecutive quarter. He said their invoice value amounted to more than R456m.
“That is the problem, and you can imagine what happens to those businesses when they deliver services and do not get paid. The number of invoices older than 30 days and not paid by national departments at the end of the quarter was 4,993 with an approximate value of R422m. That's the pain that our small businesses are experiencing,” he said.
He noted that the defence department was also the highest culprit during the first and second quarters, with an average of 61% and 80% respectively of the total number of invoices paid after 30 days by national departments.
He has appealed to the department of defence to improve.
Gxoyiya was briefing the media and providing updates on the nonpayment of suppliers, fiscal consolidation and whistle-blower protection.
He emphasised the importance of whistle-blower protection, after concerns raised at the 2022 International Anti-Corruption Day.
“The hosting of the whistle-blower's symposium highlighted the challenges regarding the protection of whistle-blowers and their families in South Africa. The protection of whistle-blowers was identified as one of the high priority areas in the national anti-corruption agenda.”
“During the symposium, a resolution was made for the establishment of a whistle-blower protection house to support whistle-blowers and facilitate access to support ... and to provide financial assistance, legal counsel and psychological support. The establishment of this important initiative will require the amendment of the current legislation. The department of justice and constitutional development is at an advanced stage in reviewing the Protected Disclosures Act,” he said.
On fiscal matters, the PSC has acknowledged government's efforts to contain costs but warned against excessive budget cuts that could affect essential services.
While cost-saving measures, such as reducing non-essential travel and minimising the use of consultants have been implemented, the PSC stressed the need for balance to prevent harm to healthcare, education and service delivery.
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