Jacques Smalle MP
DA Limpopo Provincial Leader
A reply to a DA parliamentary question has revealed that the Limpopo provincial government has R634 million in unpaid invoices, notwithstanding the fact it is now close 2 years since several departments were placed under administration by National Treasury.
This is a staggering amount of unpaid debt. Service providers are being pushed out of business by a government that does not pay its bills.
Furthermore, this reply showed that as of 30 September 2013, there were invoices worth R59 million that were over 30 days in arrears.
Every effort must be made to pay service providers on time, whilst at the same time making sure that every invoice is vetted against fraudulent claims.
What is clear is that the previous executive under Mr. Mathale allowed this backlog to build up; and that National Treasury has not managed to resolve the situation.
These unpaid bills put a serious strain on the service are relying on these payments to also pay their employees. Some of these service providers were forced to close shop because of their inability to get their monies from government.
I will write to the Minister of Finance, Pravin Gordhan, to request an explanation on steps he is going to take to make sure that all those legitimate service providers get their monies on time.