Treasury hits out at govt depts for non-compliance on payments to service providers

JOHANNESBURG - National Treasury has hit out at some government departments for non-compliance, as payments fell behind in the 2023/24 financial year.

Billions of rands worth of invoices from service providers were either paid late or remained outstanding.

In the 2023/24 financial year, more than 360,000 invoices were paid after 30 days.

The rand value of these invoices sums up to R35 billion, making this a regression from the previous year.

By law, government departments are required to pay suppliers within 30 days of receipt of an invoice.
  
Treasury’s latest report shows national departments were responsible for 30% of invoices paid after 30 days.

The Department of Defence was the biggest defaulter, followed by Public Works and Infrastructure.

Of the provinces, Gauteng had the highest number of invoices paid after 30 days, followed by the North West and the Eastern Cape.

Treasury said the non-compliance by departments made it difficult for businesses to pay salaries and meet their contractual obligations.