Gauteng supplier payment: Have HODs signed performance agreements?

By Adriana Randall MPL, DA Gauteng Spokesperson on Finance:

In an effort to ensure the expansion of township businesses and SMMEs in Gauteng, Premier David Makhura indicated that all provincial heads of departments (HODs) would include the payment of suppliers within 30 days as a critical key performance area (KPA) their performance agreements by 31 May 2015.

The question is of course whether the premier has lived up to this promise.

Earlier this year Finance Minister Nhlanhla Nene insisted this be done to ensure that entities doing business with government are not crippled by late payments, and that those who fail to make these payments are held responsible.

Gauteng is notorious for the late payment of service providers – with some businesses being forced to shut down due to bad debts as a result.

According to Premier Makhura, these performance agreements, which are defined by Chapter 8 of the Handbook for Senior Management Service, will ensure fiscal compliance among department heads.

By his own admission, the Premier has clearly stated that failure to ensure timeous payments hold back growth and investment – which he has promised to stimulate and improve.

To this end, the DA will request the Premier to provide copies of the signed performance agreements of all provincial HODs as well as the monitoring and evaluation rubric for the agreements.