Failing ANC in Gauteng not paying suppliers in 30 days

Issued by Ashor Sarupen, MPL – DA Gauteng Spokesperson on Finance
14 Jan 2019 in Press Statements

The failing ANC-led Gauteng Provincial Government is the worst performing province in South Africa when it comes to paying suppliers within 30 days, according to a report from the Department of Public Service and Administration (DPSA). In terms of the Public Finance Management Act (PFMA), government departments are obliged to pay suppliers within 30 days of receipt of invoice – but adherence to this, particularly by the Gauteng province, has been lacking for years.

According to the DPSA, for the first quarter of the 2018/2019 financial year, the nine provincial governments failed to pay a staggering 96 076 invoices on time, of which Gauteng was responsible for 37 073. This amounts to 38% of all late and unpaid invoices attributable to the failing ANC-led Gauteng provincial government. By contrast, the DA-led Western Cape government only had 545 invoices not paid within 30 days – a mere 0,5% of the total invoices across the country.

The total value of Gauteng’s late and unpaid invoices for the first quarter of the financial year totalled a staggering R2,3 billion, compared to R31-million in the DA-led Western Cape. The DSPA indicates that this is still attributable predominantly to the failing Gauteng Department of Health – which also has years of unpaid accruals for suppliers not being paid.

Many of these are emerging township enterprises, but the failing ANC neglects to pay them, strangling small business and destroying the cash flow of many firms. This problem is endemic and indicative of an uncaring ANC government that cannot manage its financial affairs.

A DA-led government in Gauteng should follow the lead of the Western Cape in this regard and pay its suppliers on time, as well as ensure sound financial management to prevent years of accurals building up, as we see small business development as essential to creating jobs and growing the economy.

The DA will be tabling parliamentary questions to Gauteng Finance MEC Barbara Creecy to ensure that there is accountability for the province’s failures to pay its suppliers on time.

Only a DA-led government can bring change that builds an economy by supporting small businesses by paying them on time.