Government paying better

NATIONAL government departments are showing an improvement in the payment of invoices‚ but provincial departments are regressing‚ according to a report tabled with the cabinet.

This has prompted the government’s highest decision-making body to establish a special unit within the Department of Planning‚ Monitoring and Evaluation to help government departments that cannot meet the 30-day payment period.

A national hotline will also be launched through which suppliers can lay complaints.

Minister in the Presidency Jeff Radebe said at the weekend the cabinet had received an updated report on the analysis of suppliers paid within 30 days from receipt of a legitimate invoice.

The cabinet had noted progress made‚ but raised concerns over some departments that still faced challenges, Radebe said.

Paying suppliers‚ especially small and mediumsized black-owned companies‚ has been a cornerstone of the government’s economic policy to ensure that these companies remain financially stable and are able to create jobs.

According to the report‚ an analysis of national departments from January 2013 to October last year showed an improvement of 39% on the average number of invoices paid within 30 days.

There was also a 32% improvement on the average number of invoices paid after 30 days.

National departments reported 155 572 invoices worth R3.8-billion were paid after 30 days over the same period‚ while 62 887 invoices worth R2.1-billion older than 30 days had not been paid.

Provincial departments for the same period showed a marginal improvement of 5% in the average number of invoices paid within 30 days.

Provinces reported 241 332 invoices worth R13.4-billion were paid after 30 days and 356 079 invoices worth R21.8-billion which were older than 30 days had not been paid.

– BDlive

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