Businesses face bribes, layoffs, while waiting for payments
Bad consequences hit owners, workers
Vuki Ndlela laboured over his words as he painstakingly explained how, for more than 10 years, he has had to deal with different government department officials to get paid for services he has rendered.
Ndlela, 44, is one of many suppliers in Gauteng who had to bear the consequences of having his invoices paid after 30 days by different departments in the province.
The contractor, who renders maintenance services - who fixed the electricity, doors, windows and plumbing through his company - to the departments of health, infrastructure and development, and education, told Sowetan he has had to wait for as long as four months for his invoices to be processed and for him to be paid.
“My brother, you need to understand that the issue of noncompliance with payments is something that has always been there with these departments. You rarely get your money on time even after you submit your invoice in time,” said Ndlela.
“When you get paid, you use most of the money to pay debts and salaries, then you start from scratch and have to borrow money again so that you can start working on another project.” said the ripple effect caused by delays left him in a difficult position, barely able to make ends meet.
“I have a rotational staff of 10 people. These are people who have families and need to have their salaries paid on time because they have responsibilities, so when I do not get paid on time, they do not get paid on time.
“Their children go hungry and their bills are not paid,” said Ndlela.
He said he had exhausted his credit card, and that his business survives on a cycle of loans in order for it to stay afloat.
Furthermore, these challenges are worsened by government officials soliciting bribes from them.
“Last year I had to wait for four months for my invoice of R800,000 to be processed and for me to get paid.
“You need to understand that government departments require you to fund the entirety of a project before they can pay you.
You also need to budget money that you will give to officials so that they can process your invoice in time – you pay someone to do their jobs,” he said.
“They [officials] will sit on your invoice forcing you to inquire about it so that they can solicit a bribe from you in person.
“You pay that bribe because there is nothing you can do if you want your money and the biggest culprits are the GautHe eng department of health, infrastructure and development and the department of education.”
In a bid to mitigate the effects of late payment, the National Treasury resolved that the payment of invoices within 30 days be included in performance agreements of accounting officers, CFOs and others responsible for these tasks. Ndlela welcomed these resolutions, but said suppliers were sceptical that anything
would be done to improve the system.
“We have been complaining about these issues for a very long time, nothing is going to be done. We have meetings with these people, they take note of our complaints but never do anything.”