g-Fleet: R2.1 million owed over six years

By Ashor Sarupen MPL DA Gauteng Spokesperson: Finance:

In response to questions posed by the Democratic Alliance (DA) it has been revealed that g-Fleet, an entity of the Gauteng Department of Roads and Transport owes a single supplier R2.1 million dating as far back as 2009.

G-Fleet is one of the worst performing entities in the Gauteng Provincial Government (GPG), and has been plagued for years with poor audit outcomes by the Auditor-General. Most recently, it received an adverse finding in the 2013/14 financial year.

Over the 6 year period, SMM Telematics – now known as Fleetmatics VMS have 41 outstanding invoices which can be broken down as follows:

  • 1 year, 1 quote:     R467 177;
  • 2 years, 3 quotes:  R183 926;
  • 3 years, 10 quotes: R388 481;
  • 4 years, 12 quotes: R541 225;
  • 5 years, 10 quotes: R479 880; and
  • 6 years, 5 quotes:  R117 736.

While Gauteng finance MEC Barbara Creecy has made all the right noises about the payment of suppliers within 30 days of receipt of invoice, little progress is being made to reconcile outstanding debt across the GPG.

It is critical that outstanding monies are paid, as many suppliers have been forced in to untenable situations as a result of doing business with government.

The GPG intends to increase the number of SMMEs that it does business with, however, given its track record, it may end up killing off more opportunities that it creates if it does not combat its tardy approach to old debt.