National departments getting it right
Underperforming departments get a helping hand
Mathenjwa said that out of 40 national departments, 23
Chief financial officers and provincial accountants-general are
showed an improvement in the payment of invoices in the
engaged regularly by the unit to alert them where performance
first quarter of 2016/17, with 10 of these maintaining a clean
is poor. In addition, the department visits departments and
record of zero invoices throughout the quarter, thus fully com-
provinces whose performance was cause for concern.
plying with the 30-day payment rule. However, the remaining 17 departments showed a downward trend. In April 2016, national departments paid 11 375 invoices after 30 days, and this represented a monetary value of R327 million.
Mathenjwa explained that the purpose of the visits is to identify the root causes of non-payment of invoices. An inspection is carried out to assess the entire value chain of the payment of invoices, identify blockages and assist departments in putting improvement measures in place.
In May, there was a spike, with 20 948 invoices being pro-
The visits are also meant to share best practices and obtain
cessed and paid. However, the monetary value of those in-
commitment from chief financial officers on improved compli-
voices went down to R305 million.
ance with the payment of invoices.
In June, there was a slight reduction in terms of the number
In areas where there is non-compliance, cases are lodged
of invoices that were paid (17 668), however the monetary
with the unit, investigations are conducted and payment to
value went up to R340 million.
the service provider is facilitated where invoices are proven
The number of invoices that were older than 30 days and were still not paid amounted to 9 881 (April), 12 780 (May) and 12 870 (June). This represented a regression of 2 899 unpaid invoices from April to May, and a slight improvement of 90 invoices from May to June. In monetary terms, this means that invoices that are older
to be legitimate. Since the inception of the unit, a total of 102 cases have been lodged and 47 of those have been closed, while 55 cases are in progress. To date, a total amount of R177 million has been paid to various service providers as facilitated by the unit.
than 30 days and not paid amounted to R499 million in April,
Nationwide roadshows on the cards
R55 million in May and R62 million in June.
Following an imbizo held in Gauteng recently on the issue of
This represented an overwhelming improvement of R444
unpaid invoices, Deputy Minister in the Presidency responsi-
million from April to May, and a regression of R7 million from
ble for Planning, Monitoring and Evaluation Buti Manamela,
May to June.
stressed that the failure to pay invoices within 30 days was
Performance of provincial departments
financial misconduct. “We cannot emphasise this anymore than it has been. What
As at June 2016, the total number of invoices paid after 30
we can do is repeat it and understand that to not pay within
days was 29 306, with a value of R1.8 billion. In June 2015, the
30 days is serious financial misconduct,” he said.
number of invoices paid after 30 days by provincial departments was 30 466, with a value of R1.6 billion. Mathenjwa said that a number of invoices are decreasing over the quarter and the rand value remained the same in May and June 2016.
He added that he would go on a nationwide roadshow to engage small business enterprises – who are the hardest hit by the non-payment of invoices – to discuss the challenges they face. “We are taking the work seriously because it is linked to the
Between April and June 2016, only three provinces - Gauteng,
economy. It is linked to jobs, it is linked to sustainable SMMEs
KwaZulu-Natal and Limpopo demonstrated an improvement
because we believe that is where the solution for dealing
in the payment of invoices older than 30 days, while the rest
with unemployment broadly lies; that is why are taking this
have shown a downward trend.
Public Sector Manager • December 2016 / January 2017