Gauteng still failing to meet 30 day payment deadline

March 5, 2015

The Gauteng Provincial Government is still struggling to pay suppliers within 30 days – severely damaging the cash flow of many small, black owned businesses and causing many others to go insolvent.

This was revealed in response to written questions tabled in the Legislature by the DA.

In January 2015 alone, an outstanding amount of R618 million had still not been paid to suppliers within 30 days.

This amount was for 9352 invoices.

By contrast, only 7013 invoices were paid within 30 days – meaning that some 56,5% of invoices were not paid on time.

The biggest offender was the Department of Health, which accounted for R412 million in late payments.

This is despite the Gauteng Treasury placing the Department under administration and spending R90 million on consultants to manage its finances.

Worryingly, it was revealed in the Finance Committee that the Department of Health had some invoices outstanding for 5 years.

The Department of Infrastructure Development was the second worst offender, accounting for R137 million worth of invoices.

Payment trends do not show any improvement as payments are often made sporadically.

The Gauteng Government had in excess of R3 billion worth of invoices not paid within 30 days in September 2014, from just R82 million outstanding in July 2014.

This situation, it would appear, is getting worse, not better.

MEC Creecy needs to crack the whip across the board to sort out this situation.

It is unacceptable that there has been a decline under her tenure.

The DA will continue to hold the ANC accountable for its failure to pay suppliers, as it severely affects small businesses that are the drivers of much needed job growth in the economy.

Media enquiries:
Ashor Sarupen MPL
DA Gauteng Spokesperson on Finance
060 558 8303

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