Writer: Amukelani Chauke
Addressing the non-payment
of service providers
ational government departments have stepped
Cabinet took resolutions in 2009 and 2010 that depart-
up their efforts to ensure that suppliers and service
ments must implement mechanisms to ensure payments
providers are paid within 30 days.
are processed within 30 days.
Irene Mathenjwa, who is Outcome Facilitator: Public Service
The National Treasury then issued a communique in
at the Department of Planning, Monitoring and Evaluation
May 2010 that non-compliance with the Public Finance
(DPME), said while the department is concerned about the
Management Act and Treasury Regulations constituted
number of departments that still fail to pay their invoices on
grounds for financial misconduct.
time, the picture is not all “doom and gloom”.
To enforce monitoring of the payment of suppliers,
“We have got about 23 departments that have demonstrated
the National Treasury issued an instruction note on 30
an improvement in the payment process of their invoices within
November 2011, requiring national departments and
the first quarter. So if you look at the beginning of the quarter
provinces to submit monthly exception reports for late
and the end of the quarter, those invoices have gone down.
or non-payment of suppliers within 30 days and reasons
“We are also heartened by some of the departments that have
maintained a clean record of zero [unpaid] invoices throughout
In 2012 and 2013, Cabinet also agreed that financial
the quarter. So from the beginning of the quarter to the end of
misconduct proceedings should be instituted against
the quarter, they paid all of their invoices on time.”
errant officials, and that the executing authorities and
Supporting the small business sector
accounting officers should enforce compliance. In April 2015, a special unit was established within the
After noting the devastating impact that the non-payment of
DPME to tackle the problem of non-payment of suppliers
invoices within 30 days has on suppliers, especially small, me-
within the required 30 days.
dium and micro-sized enterprises (SMMEs), several measures
Since the unit was formed, the number of legitimate
were taken to address the issue as the small business sector
invoices paid as at June 2016 stood at 17 668, with a
has been identified as a crucial source for jobs.
combined value of R340 million.
Public Sector Manager • December 2016 / January 2017