G-Fleet Must Immediately Suspend Accounts With Bad Debtors

g-FleeT
March 16, 2017

G-Fleet Management

G-Fleet management, which is owed more than R370 million by client departments – namely the Gauteng Departments of Health and Infrastructure as well as the Office of the Chief Justice, must immediately suspend accounts with debt older than 90 days so as to stem the incursion of more bad debt.

The agency has indicated that it has embarked on a process to recover outstanding funds older than 90 days, claiming that it will discontinue the provision of petrol cards to these debtors should the funds not be paid. However this is not enough.

In accordance with the Public Finance Management Act, all transactions must be paid within 30 days of procurement. The fact that some departments and entities have been allowed to ring up debt beyond this period is not only indicative of poor financial controls – it is also unlawful.

Monitor the Performance of G-Fleet

G-Fleet has for many years been flagged by the Auditor General as one of the province’s worst performing entities as it continues to haemorrhage funds. It has fared slightly better under the current CEO – but more needs to be done if the entity is to become financially sound.

Gauteng Roads and Transport MEC, Ismail Vadi must instruct G-Fleet to immediately suspend services to long outstanding debtors and put in place mechanisms to recover outstanding monies.

The DA will continue to monitor the performance of G-Fleet to ensure that it complies with legislation and implements an effective credit control strategy.

 

 

 

Media enquiries:

Fred Nel MPL

DA Gauteng Shadow MEC for Roads and Transport

083 263 2427

 

 

Warren Gwilt

Economic Cluster Manager

073 601 6144

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