Cabinet has approved the establishment of a special unit to follow up with departments that are struggling with the payment of suppliers within 30 days from receipt of a legitimate invoice.
Briefing reporters during a post Cabinet briefing on Friday, Minister for Performance, Monitoring and Evaluation in the Presidency, Jeff Radebe said the unit will be situated within his department.
He said Cabinet has noted the progress made with the payment of suppliers, but raised concerns on some of the departments that still face challenges.
He said the unit will work collaboratively with National Treasury and the Department of Public Service and Administration.
“In addition, a national hotline will be publicised that will be available to suppliers to log instances of delayed payment. This will be taken up with the relevant department and responses will be reported on,” Minister Radebe said.
A comparative analysis of the national departments between January 2013 to October and January 2014 to October 2014, showed an improvement of 39% on the average number of invoices paid within 30 days and a 32% improvement on the average number of invoices that were paid after the 30 days.
National departments reported 155 572 invoices worth R3.8 billion which were paid after 30 days at the same time, 62 887 invoices worth R2.1 billion invoices older than 30 days 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 R13.4 billion which were paid after 30 days and 356 079 invoices worth R21.8 billion invoices older than 30 days which were not paid,” Minister Radebe said.
He noted that this is a 52% regression n the average number of invoices that is older than 30 days which have not been paid.
Source : SAnews.gov.za