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FEATURE

Writer: Amukelani Chauke

Addressing the non-payment

of service providers

N

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

thereof.

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.

56

Public Sector Manager • December 2016 / January 2017


PSM December/January Edition 2016/2017