Government ‘found wanting’ on 30-day payments, says Radebe
THE government has been found wanting on 30-day payments for services and this is significantly affecting small business, economic growth and job creation.
This is according to Minister in the Presidency for Planning Monitoring and Evaluation Jeff Radebe, who said on Tuesday the failure of government departments to pay for services within days 30 remained a major challenge.
Speaking before his budget vote debate, the minister said a comparative analysis for 2013/14 by his department showed that 155,572 invoices worth R3.8bn were paid within 30 days but that 62,887 invoices older than 30 days, worth R2.1bn, had not been paid.
"Provincial departments for the same period reveal a marginal improvement of 5% in the average number of invoices paid within 30 days. Provinces reported 241,332 invoices worth R13.4bn were paid after 30 days and 356,079 invoices worth 21.8bn and older than 30 days were not paid.
"This is a 52% regression in the number of invoices older than 30 days which have not been paid."
It had been decided to create a special unit to monitor 30-day payments rigorously and clear the bottlenecks.