FEATURE
Government
departments must pay suppliers on time
T
he Public Service Commission (PSC) has warned govern-
ment departments that they risk being exposed to costly litigation due to the late and non-payment of suppliers.
“Late and non-payment of suppliers can expose departments to costly litigation including being ordered to pay interest on late payments resulting in the already scarce financial resources being diverted from priority areas,” said PSC Commissioner Anele Gxoyiya.
Commission report for the
He added that PSC sup-
“The PSC has made
period 1 October 2021 to 31
several recommendations
ports the action taken by
are required to settle all
December 2021, Gxoyiya
taking into consideration
President Cyril Ramaphosa
contractual obligations
added that the non-pay-
the reasons provided by
to address the issue of
and pay all monies owed,
ment or late payment of
national and provincial
late and non-payment of supplies.
Government departments
including intergovern-
suppliers also impacts the
departments, such as
mental claims, within the
financial health of busi-
misfiled, misplaced or
prescribed 30 days from
nesses.
unrecorded invoices that
Address, the President
are rooted in the lack of
announced the current
receipt of an invoice or, in
In his State of the Nation
the case of civil claims, the
Compliance
internal controls measures,
Chairperson of the Small
date of settlement or court
The PSC is monitoring
which refer to not only the
Business Institute will head
judgement.
compliance with the 30-
systemic issues but also
a unit in the Presidency to
day payment provision of
human resources short-
identify priority reforms for
invoices of suppliers.
comings,” Gxoyiya said.
the year ahead, including
Releasing the PSC’s Pulse of the Public Service
22
Public Sector Manager • April 2022
