Only 15% of suppliers paid on time despite Mokonyane promise

Mike Moriarty MPL

Spokesperson on Finance

Despite all efforts and a House resolution requiring timeous payments to suppliers, the Gauteng Provincial Government is still a huge drain on the cash flow of most businesses in Gauteng.

In a reply to my question it was revealed that as of September 2013, only 15.39% of supplier invoices were paid on time. The provincial government claimed it was paying suppliers within 37 days on average and not the 30 days required by law.

This is not comforting to those 84.61% of companies doing business with the province, who collectively were owed R374m at the time when payment was due.

Indeed, the province’s response indicated that on average, 80% of suppliers were likely to be waiting beyond 30 days for payment across the first 6 months of this financial year.

Moreover, September should be regarded as a ‘good month’. In the worst month (April 2013) only 11.82% of invoices received. In the best month (July 2013) the government paid 30.28% of invoices on time. This is far off the target of 98%

Currently, the worst performing department is the Department of Infrastructure, which pays invoices within 91 days. However, as recently as June the Department of Roads and Transport was taking and average of R165 days to pay their invoices.

In the worst case, the Gauteng Department of Health paid an invoice in July this year some 2 197 days after the date of invoice. This is nearly 6 years after the due date. In that month R1.210 billion was owing to suppliers after the due date for payment.

Clearly, despite all sorts of noises to the contrary, Premier Nomvula Mokonyane has not fixed the problem of non-payment to suppliers.

If the DA was running Gauteng, suppliers would be paid on time. Staff would see to it companies are paid on time. Anything less would cost them their jobs.