Justice and Constitutional Development Dept deemed biggest govt defaulter
The Department of Justice and Constitutional Development reported 4,500 late or unpaid invoices during the second quarter of the 2023/2024 financial year.
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JOHANNESBURG - The Department of Justice and Constitutional Development is deemed the biggest defaulter, as millions of rands go unpaid to businesses.
The non-payment of suppliers is still a big concern, as some businesses run into cash troubles.
Out of 40 national departments, the Public Service Commission (PSC) said 23 didn't pay service providers on time in the second quarter of the current financial year.
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On a national scale, the overall rand value of invoices paid after 30 days in the second quarter of the 2023/2024 financial year amounted to R1 billion.
The Department of Justice and Constitutional Development reported a whopping 4,500 late or unpaid invoices during this period.
PSC commissioner Anele Gxoyiya said the implications were dire.
“It’s a problem because it means R1 billion worth of money was kept by the departments when it was supposed to be in circulation with the service providers, who at times are struggling to pay their employees.”
The PSC said the most common reasons for late payment or non-payment included inadequate budgets, disputes with suppliers and poor internal controls.