Govt’s late payment ‘alarming’ – Zuma

2012-05-15 13:13

The government’s non-compliance in paying suppliers within 30 days has reached alarming levels, President Jacob Zuma has said.

“A key contribution to the development of small business by government would be improving government’s ability to pay suppliers on time, within the prescribed 30-day period,” Zuma said today.

“We know that this has been a serious challenge to business over a long period of time. Given that non-compliance with the 30-day payment period had reached alarming levels, we decided to have this addressed at the highest levels of government.”

Zuma was speaking at the Soweto International Conference on Entrepreneurship and Small Business Development, at the University of Johannesburg’s Soweto campus.

Zuma said the National Treasury issued an instruction on November 30 last year, directing national and provincial departments to report non-compliance and reasons for this to Treasury.

“The outcome demonstrates that we had reason to be concerned,” Zuma told the conference.

For March 2012 27 national departments and six provincial treasuries, that cover 72 provincial departments, submitted their reports.

According to the report the current number of unpaid invoices older than 30 days in national departments was remarkably high at over 2 438, Zuma said.

“The amounts are in excess of R88 million.”

In provincial departments there were 11 370 invoices outstanding, amounting to over R548 million.

“When all the departments submit exception reports the figures are likely to grow substantially,” Zuma added.

“Most of the reasons provided relate to internal management problems in departments. Some of the reasons are shocking, such as that the officials responsible for processing the accounts went on leave.”

Zuma said the Forum of SA Directors General was directed to work with its members to ensure a reduction in the number and value of unpaid invoices.

“It is unacceptable that departments can be so relaxed about something that can destroy some small businesses if not attended to urgently,” he said.

Cabinet would get regular reports to monitor progress in the campaign, he said.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/Sport

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.