Eastern Cape and Gauteng owe billions to suppliers: Treasury

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The Eastern Cape and Gauteng provinces have failed to pay suppliers over R4.5 billion and R2.7 billion respectively within the prescribed 30-day period. This is contained in the Annual Report on Late Payment of Supplier’s Invoices by National Treasury for the 2023/2024 financial year.

The report also says some national departments continuously fail to submit monthly exception reports with the worst performers being Labour and Public Works.

Small Business Development Minister Stella Ndabeni Abrahams says failure to pay invoices on time has a negative impact on the cash-flows of small businesses.

Spokesperson Cornelius Monama, “When invoices are not paid on time, cash-flow and liquidity constraints threaten their [suppliers] very existence. This undermines their capacity to ignite economic growth and create jobs and sustains systemic patterns of economic inequality. Collectively, government shoulders the responsibility to create an enabling environment for small businesses to grow in and thrive. Among other things, this requires that we pay small businesses on time for services rendered.”