Public Service Commission (PSC) Commissioner, Anele Gxoyiya, had expressed concern on the non-payment or late payment of suppliers, saying this imposes dire consequences on the financial health of businesses.
“Late and non-payment of suppliers can expose departments to costly litigation for non-payment including being ordered to pay interest on late payments resulting in the already scarce financial resources being diverted from priority areas,” Gxoyiya said.
Addressing the media in Pretoria earlier today, Gxoyiya said in discharging its constitutional responsibility, the PSC continues to monitor compliance with the 30-day payment provision of invoices of suppliers.
“The PSC has made several recommendations taking into consideration the reasons provided by national and provincial departments, such as misfiled, misplaced or unrecorded invoices that are rooted in the lack of internal controls measures, which refer to not only the systemic issues but also human resources shortcomings,” Gxoyiya said.
Gxoyiya said the PSC supports the decision taken by the President as stated in the 2022 State of the Nation Address of the appointment of the current Chairperson of the Small Business Institute to head a unit in the Presidency to “identify priority reforms for the year ahead, including mechanisms to ensure government departments pay suppliers within the required 30 days” as a response to the plight of small businesses in South Africa.
“Government departments are required to settle all contractual obligations and pay all monies owed, including intergovernmental claims, within the prescribed 30 days from receipt of an invoice or, in the case of civil claims, the date of settlement or court judgement,” he said.
Gxoyiya said there has been an improvement in the payment of suppliers by the national departments during the third quarter, despite the late submission of information to the National Treasury.
With regard to cases of alleged corruption received by the PSC through the National Anti-Corruption Hotline (NACH) in the 2020/2021 financial year, Gxoyiya said 24 650 cases of alleged corruption were reported by callers and whistle-blowers as at 31 December 2021 since the inception of the NACH in September 2004.
During the third quarter of 2021/2022 financial year, the PSC recorded a total of 347 cases. These cases, according to PSC, are slightly higher than 337 cases received in the second quarter and 282 received in the first quarter of 2020/2021 financial year.
“The PSC noted from the feedback provided by departments on concluded investigations that the number of complaints investigated by departments were unsubstantiated.
“To this end, the PSC encourages members of the public and whistle-blowers to provide full detailed information to enable investigators to make informed conclusions,” Gxoyiya said.
Source: South African Government News Agency