Parliament hears School of Govt owed R16m
Members of Parliament were told the School of Government, which recorded a deficit of R78 million in the last financial year, is saddled with historical debt.
CAPE TOWN - Government’s public servants’ training facility is owed at least R16 million by state departments.
They have been refusing to pay for services dating back to 2008.
Members of Parliament (MPs) were told the School of Government, which recorded a deficit of R78 million in the last financial year, is saddled with historical debt.
The school’s management presented the institution’s financial reports to Parliament’s Public Service and Administration Oversight Committee on Wednesday.
The school has roped in National Treasury to help collect what it’s owed.
EFF parliamentarian Mmabatho Mokause asked officials whether the debt burden has affected operations.
“What reasons have they given for not being able to pay the debt?”
The school's chief financial officer Phindile Mkwanazi explained that retrieving historical debt is a tough exercise.
“We know they are faced with budget cuts. At the end of the financial year, if they haven’t paid, they need to return the funds to Treasury.”
A pre-payment system is in place to avoid accumulating further bad debt.
The school, which has not been meeting its revenue targets, is also reviewing its funding model.