Gauteng businesses continue to suffer from late payments as Gauteng Health Department only paid 19% of invoices within 15 days

Gauteng small businesses that provide services to the Department of Health in the province have to wait extremely long before they are paid. This means that they may potentially struggle to pay their employees on time because of this delay.

This information was revealed to me by the MEC for Health, Nomathemba Mokgethi, in reply to my questions tabled in the Gauteng Provincial Legislature (GPL) regarding the payment of invoices.

Out of 122 018 invoices received for the 2021/2022 financial year, only 22 794 were paid within 15 days, and 99 227 were paid out of 15 days. 62 235 invoices were paid out of 30 days.

This has resulted in R1 510 582,28 being paid in penalties due to the late payment of invoices to FNB (Medico-Legal Litigations), Telkom, Eskom, and EMS (Standard Bank).

The late payments of invoices put the delivery of services at risk, as suppliers may withhold their services until they are paid in full.

Given the current load shedding crisis where many small businesses may be unable to trade for between 4 to 6 hours daily, the late payment of invoices by the Gauteng Department of Health is an added burden in their attempts to keep their businesses afloat.

The DA will be putting pressure on all government departments to pay suppliers within 15 days, as is the current practice in the Western Cape. This will allow departments to negotiate an early settlement discount, and they will avoid paying an exorbitant amount in penalties.

Are you not getting paid? Paid late?

Are you a service provider to the Gauteng Provincial Government and have not been paid within the stipulated 30-day payment period?

Send your complaints/queries to: supplierpaymentproblems@gmail.com

Pay Service Providers On Time To Avoid Destroying Businesses

David Makhura

Gauteng Premier David Makhura avoided DA questions in the Legislature today about outstanding amounts of money to be paid to service providers in the province since he took office in 2014.

The Premier also evaded questions about money spent defending government departments for not paying service providers on time.

Contrary to the Premier’s evasive attitude, the DA is aware of service providers who have not yet been paid by the provincial government 3 years down the line.

Accountability

The Premier singled out the Department of Roads and Transport as the only department facing litigation. However, the Health Department is also guilty of having to go into litigation for non-payment of service providers.

It is imperative that all service providers are paid on time.

All MECs and Heads of Departments must be held accountable to ensure proper planning and implementation of projects in the province.

Gauteng can’t afford to destroy opportunities aimed at benefiting small businesses and unemployed people in the province.

The DA will monitor progress on this issue until is properly dealt with.

 

Media enquiries:

Khume Ramulifho MPL

DA Gauteng Shadow MEC for Education

082 398 7375

Gauteng Premier And MECs To Face Questions For Oral Reply

Tomorrow, 15 March 2016, DA members of the Gauteng Provincial Legislature will pose oral questions to Gauteng Premier David Makhura and Members of the Executive Council (MECs).

A number of issues will be covered, including the late payment of service providers, school infrastructure programmes, and contracts for healthcare facilities who care for psychiatric patients.

Date: 15 March 2016

Time: 10h00

Venue: Gauteng Provincial Legislature, Johannesburg.

There will be opportunities for interviews and photographs. Members of the media are welcome to attend.

 

Media enquiries:

Warren Gwilt

DA Gauteng Manager: Communications and Research

060 963 8320

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