East Cape government owes businesses R2.3bn

Eastern Cape government departments owe businesses R2.3bn in outstanding payments that are in excess of 30 days.

In response to a parliamentary question asked by DA MPL Bobby Stevenson, finance MEC Mlungisi Mvoko said 18,174 invoices —  totalling R2.3bn — were more than 30 days in arrears.

“There is no place for a job-crushing administration in these times,” Stevenson said.

He said businesses were already battling to make ends meet and pay staff.

“This non-payment for work runs contrary to any commitment to economic recovery.”

In his response, Mvoko said the Treasury had contacted the various departments to ensure payments were sped up.

Stevenson, meanwhile, called on the government to pay the businesses to get money flowing into the economy.

The department of health made up the bulk of invoices, owing in excess of R2.1bn.

“The reasons given for the health department’s non-payment of suppliers was that voted funds were depleted.

“This means that, as at the end of February 2020, the department no longer had any funds left in their budget to pay suppliers.”

Stevenson said this was unacceptable.

He said Mvoko revealed the second worst performer was the department of education, owing just more than R154m.

“The provincial Treasury needs to urgently intervene to ensure that suppliers are paid within 30 days, with a special focus on addressing the backlog in the department of health,” Stevenson said.