Small businesses and their employees go without income as Gauteng fails to pay over R7 billion in invoices

The Democratic Alliance (DA) in Gauteng is deeply concerned that the Gauteng Provincial Government (GPG) is taking longer than 30 days to pay invoices.

This is a worrying trend as it means those small businesses who may be waiting for payment is negatively impacted, and would not be able to pay their employees on time, leading to more financial frustration for their own families and households.

This information was revealed in a recent report released by National Treasury on non-compliance with payments of suppliers.

According to this report, 28% of invoices totalling R7 836 885 671,00 were paid after 30 days for the 2020/21 financial year. Gauteng has the second-highest number of invoices and the highest rand value of invoices not paid on time.

50% of invoices totalling R1 413 754 979,00 was older than 30 days that has not been paid on time.

Small businesses are already in dire straits due to the Covid-19 pandemic and now more recently the unrest and looting that spread through the country, particularly in Gauteng.

These businesses may then need to take out a bridging loan if their invoices are not paid in order to ensure that their employees are paid a weekly or monthly salary as agreed upon.

This is unacceptable as it may lead to small businesses then having to close their doors if this trend continues.

A DA-led Gauteng government will replicate what we are doing in Western Cape by ensuring that all invoices are paid within 30 days or less, as this is important to ensure that small businesses are not put in a position where they are unable to pay employees’ salaries.

In the Western Cape, the DA-led government has paid 98% of all invoices for goods and services within 30 days. In addition, this was the only province to not have any invoices older than 30 days outstanding by the end of the 2020/21 financial year.

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