UDM: E Cape education owes suppliers

2011-05-11 16:59

Johannesburg - The United Democratic Movement (UDM) said on Wednesday that the Eastern Cape education department, hit by a financial crisis earlier this year, had not paid service providers.

Chief Whip Stanley Ntapane in a statement: "It is sad that this happens at a time when South Africa’s chronic unemployment rate necessitates the encouragement and support of entrepreneurial activity.

"In fact, it makes a mockery of the government’s reabatala campaign whose central principle is about paying suppliers of goods and services to the government on time."

He said the department had not been able to pay service providers since October last year, resulting in some of them being on the brink of bankruptcy.

Departmental spokesperson Loyiso Pulumani said the department had started to service its debt after the treasury approved an allocation of funds which enabled it to pay outstanding payments.

He said outstanding payments were made to examinations assistants, early childhood development practitioners and adult basic education educators.

Payment to other service providers was expected later this week.

  • CygnusX1 - 2011-05-11 19:12

    This is the reason why we will never do any business whatsoever with any Govermnent Department. 65% Payment upfront before we even consider the start of manufacture and the balance payable before delivery!

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