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Payment of Suppliers’ Invoices Under the Spotlight

July 21, 2022

National Treasury

An annual report on non-compliance with payment of suppliers’ invoices within 30 days has been released.

In a statement, national treasury confirmed that the 2021/22 report reveals that there is an overall regression in the number of invoices not paid within 30 days by national and provincial departments in the 2021/22 financial year.

“The number of invoices paid after 30 days by national and provincial departments in the 2021/2022 financial year amounted to 401 691 invoices to the Rand value of R 33.7 billion. The number of invoices older than 30 days and not paid by national and provincial departments at the end of March 2022 amounted to 67 862 to the Rand value of R 6.1 billion”.

Recommendations contained in the report include payment of invoices within 30 days to be included in the performance agreements of accounting officers, chief financial officers and other officials working in this area; disciplinary actions against officials who fail to comply with the requirements to pay invoices within 30 days and who undermine the systems of internal control be taken; accounting officers take steps to ensure that the information to be submitted to the relevant treasury is duly signed off and submitted to the relevant treasury as per the timeframes stipulated in the National Treasury Instruction Note number 34; accounting officers and chief financial officers to address the root causes of the late and/or non-payment of invoices to improve compliance with the requirement of Treasury Regulation 8.2.3; payment of suppliers within 30 days be a standing agenda item for discussion at every EXCO meeting of departments; and accounting officers to consider recommendations provided to improve the level of compliance with the requirement to pay supplier’s invoices within 30 days.

Treasury emphasised that, in order to ensure that supplier operations continue without strain and financial difficulties, government institutions are “urged to pay their suppliers on time and not contribute to the dire effects of the Pandemic that has already put a strain on the financial sustainability of SMMEs”.