Provinces defend their record of paying service providers
Most blame incorrect information for delays
Incomplete information, dormant bank accounts and disputed documents are some of the reasons given by three of five provincial governments that have performed badly in the payment of suppliers.
According to the National Treasury report for the 2020/2021 financial year, KwaZulu-Natal had 1,985 invoices that were not paid within the stipulated 30-day period. These invoices were worth R88m. Gauteng, on the other hand, was one of the worst performers with more than 20,000 invoices worth R1.4bn unpaid. Eastern Cape had 12,651 invoices worth R1.8bn.
KwaZulu-Natal spokespervelopment. son Lennox Mabaso said the province had improved over the years in paying suppliers but lost momentum due to the Covid-19 pandemic.
“In the year under review, there has been a lot of disruption that happened due to Covid-19. There was the lockdown where staff worked from home, staff being affected by Covid and having to isolate.
“This has been the most disruptive of years. We had to deal with circumstances which had never existed.”
Mabaso said payment of suppliers is monitored by the provincial treasury and the province has a “no nonsense” stance. Reports on how departments are performing are handed to the executive.
“The executive has implemented consequence management systems and accountability for all departments ... Questions will be asked on whether the fault was on the side of the officials or the service provider. If it happens that it is an official, then the individual will be charged and disciplinary processes will be undertaken by the departmen.”
Mabaso said suppliers sometimes delay payments by submitting incomplete information and failing to provide proof of work that was done.
To improve the quality of invoices received, the province conducts workshops with suppliers to enable them to know what kind of documentation is needed for the department to pay timeously.
Gauteng government spokesperson Thabo Masebe said most unpaid invoices captured in the report were those that were in dispute.
He said all the departments performed well in paying suppliers – with the exception of health and infrastructure desame In a tweet responding to the report, Masebe said: “The figure includes disputed invoices and the payments [were] stopped by the Special Investigating Unit due to procurement irregularities.”
In the Eastern Cape, a study was conducted to uncover the root causes of non-payment. The health and education departments were responsible for most of the unpaid invoices.
Provincial treasury spokesperson Pumelele Godongwana said the study found that suppliers provided information that was not correct. Banking details were not the as those in the Centralised Supplier Database system and some had dormant banking details, he said.
“Provincial treasury has since implemented the monthly creditors forum as a platform for both departments to present their progress on the implementation of these research plans. The forum further engages both departments on the payment of creditors in ensuring that the 30 days compliance is enforced.”
Godongwana said where there is lack of funding, they are encouraged to shift funds from non-core items.