Treasury Hits Out At Government Deparments For Non-Compliance On Payments To Service Providers

National Treasury has criticized some government departments for non-compliance, as payments lagged 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, over 360,000 invoices were paid after 30 days.

The total value of these invoices is R35 billion, marking a regression from the previous year.

By law, government departments are required to pay suppliers within 30 days of receiving an invoice.

Treasury’s latest report indicates that 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.

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

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