Bhisho suppliers still plagued by late payments for services

When he took over the reins, Eastern Cape premier Oscar Mabuyane vowed that the days of state suppliers not being paid timeously were over.

However, by the end of February Bhisho had 17,470 suppliers who had submitted invoices worth a combined R2.1bn and whose invoices were 30 days old.

This was revealed by finance MEC Mlungisi Mvoko in a written parliamentary reply to DA MPL Bobby Stevenson recently.

The provincial government had promised to process and pay all valid invoices submitted by suppliers within 30 days — even launching an app with great fanfare which was meant to ensure it happened.

The Have I Been Paid invoicetracking app allows suppliers to monitor the progress of their claims for work done. When it was launched in late 2019, the EC government punted it as a possible way to end the late payment of suppliers — which in some cases resulted in some businesses having to close.

The health and education departments, which always get the lion’s share of the provincial budget, were red-flagged as the two biggest culprits.

The troubled health department ran out of money before it could pay 17,470 suppliers a combined R2.1bn by the end of February. Education owes R154m to 287 suppliers.

Stevenson said it was concerning that health had no more money to pay suppliers by the end of February.

“This is simply unacceptable. 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.

“The entire health sector could end up being crippled if service providers withhold their services due to non-payment,” he said.

This is how much other departments owed suppliers:

● Social development— R2.6m to 271 suppliers;

● Department of sport, recreation, arts and culture — R1m to 35 suppliers;

● Department of rural development and agrarian reform — R839,158 to 45 suppliers;

● Department of economic development, environmental affairs and tourism — 15 invoices worth R267,511,45;

● Human settlements — R180,228.17 to 31 suppliers;

● Transport — R114,961 to five suppliers; and

● Safety and liaison — R38,193 to 15 suppliers.

Yesterday Stevenson blasted the provincial government, blaming Bhisho for the continued jobs bloodbath.

“This uncaring approach to paying on time is crippling firms and destroying jobs. We need to get the money owed flowing into the economy as fast as possible.”

However, Mvoko said the provincial government was not always to blame for the late payments. Some suppliers submitted inactive bank details or late invoices. Others submitted incomplete invoices or invoices with queries, and others quoted using disputed rates, he said.

The office of the premier, provincial treasury, the legislature, co-operative governance and traditional affairs and roads and public works did not owe any suppliers as at the end of February.

Health and education were red-flagged as the two biggest culprits