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Picture Courtesy: (National Treasury) The National Treasury reveals that the Government has failed to pay R35 billion in invoices, within the required time frame as dictated by law.
(The Post News)- The government and provincial departments have not paid invoices within the legally mandated 30 days of receipt in terms of section 38 (1) (f) of the Public Management Act (PFMA), according to information revealed by the National Treasury in its annual report on non-compliance.
According to the National Treasury audit, hundreds of invoices totalling R35 billion were not paid within 30 days. Provincial departments were the main culprits, accounting for 70% of unpaid invoices and paying only 30% within 30 days.
National Treasury reports that despite improved financial management, national departments still struggled to pay invoices on time. They paid 30% of invoices and were responsible for 1% of invoices older than thirty days that remained unpaid as of the end of March 2024.
According to the report, the Department of Defence has the highest number of outstanding invoices among all government departments.
Within the stated period, the department failed to pay 84,934 invoices, totalling R1.4 billion.
The Department of Agriculture comes in second, with 1,164 unpaid invoices totalling R1.3 billion.
In the 2023/24 financial year, 362,068 invoices, worth R35.1 billion, were not paid within 30 days of their receipt by both national and provincial departments.
However, by the end of March 2024, these invoices were paid, albeit outside of their stipulated time frame.
Only 15 of the 40 national departments, according to the Public Service Commission (PSC), paid their payments on schedule.
The PSC listed the most common explanations provided by both national and provincial departments for late payments, stating that these could include budgetary restraints, inadequate internal controls, or internal capacity shortages.
Municipalities are also victims of governmental late payments, data from the National Treasury demonstrated that departments owed municipalities a total of R22 billion as of the end of 2023.
National Treasury reported that in the 2023/24 financial year, provincial departments paid 253,151 invoices after 30 days, amounting to R30.5 billion.
At the end of March 2024, there were 113,481 unpaid invoices older than 30 days, with a total value of R10.6 billion.
National Treasury also highlighted that provincial departments are responsible for 70% of invoices paid after 30 days and 99% of invoices older than 30 days that remained unpaid as of the end of March 2024.
(The Post News)- The government and provincial departments have not paid invoices within the legally mandated 30 days of receipt in terms of section 38 (1) (f) of the Public Management Act (PFMA), according to information revealed by the National Treasury in its annual report on non-compliance.
According to the National Treasury audit, hundreds of invoices totalling R35 billion were not paid within 30 days. Provincial departments were the main culprits, accounting for 70% of unpaid invoices and paying only 30% within 30 days.
National Treasury reports that despite improved financial management, national departments still struggled to pay invoices on time. They paid 30% of invoices and were responsible for 1% of invoices older than thirty days that remained unpaid as of the end of March 2024.
According to the report, the Department of Defence has the highest number of outstanding invoices among all government departments.
Within the stated period, the department failed to pay 84,934 invoices, totalling R1.4 billion.
The Department of Agriculture comes in second, with 1,164 unpaid invoices totalling R1.3 billion.
In the 2023/24 financial year, 362,068 invoices, worth R35.1 billion, were not paid within 30 days of their receipt by both national and provincial departments.
However, by the end of March 2024, these invoices were paid, albeit outside of their stipulated time frame.
Only 15 of the 40 national departments, according to the Public Service Commission (PSC), paid their payments on schedule.
The PSC listed the most common explanations provided by both national and provincial departments for late payments, stating that these could include budgetary restraints, inadequate internal controls, or internal capacity shortages.
Municipalities are also victims of governmental late payments, data from the National Treasury demonstrated that departments owed municipalities a total of R22 billion as of the end of 2023.
National Treasury reported that in the 2023/24 financial year, provincial departments paid 253,151 invoices after 30 days, amounting to R30.5 billion.
At the end of March 2024, there were 113,481 unpaid invoices older than 30 days, with a total value of R10.6 billion.
National Treasury also highlighted that provincial departments are responsible for 70% of invoices paid after 30 days and 99% of invoices older than 30 days that remained unpaid as of the end of March 2024.
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