Western Cape government maintains good track record of supplier payments

A recent report by National Treasury shows that the Western Cape government has maintained its track record of paying suppliers timeously and was the only provincial government to have no invoices older than 30 days outstanding by the end of 2020/21. 

Further analysis from the Provincial Treasury reveals that in 2020/21, Western Cape Government departments paid on average 98% of all invoices for goods and services within 30 days. 

The report from National Treasury also highlighted that, of the total value of invoices paid after 30 days by provincial governments during the 2020/21 financial year, the Gauteng Provincial Government owed R7.8 billion to suppliers during the 2020/21 financial year, of which R1.4 billion was still owing by the end of the year. while the Eastern Cape Provincial Government owed R5.7 billion to suppliers, of which R1.8 billion was still owing by the end of the year. 

By comparison, the Western Cape Provincial Government accounted for only 1% or R411 million of the total value of invoices paid after 30 days by provincial governments during the 2020/21 financial year, with all invoices being paid by the end of year. The only provincial government to do so.

Businesses have faced incredibly difficult times over the past year as a result of the Covid-19 pandemic and related lockdown restrictions, and so the Provincial Treasury have implemented measures to support our departments to ensure that suppliers are paid timeously, and every effort will be made ensure this is continued.

Implementing systems that track invoices adequately, reporting tools to track late payments, and tight monthly reporting processes to report on invoice payments are all critical to guaranteeing prompt payment.

Going forward, we remain committed to paying our suppliers on time, especially now as businesses need predictable cash flow to pay their employees and keep operating. 

It would simply be wrong if we were responsible for the closure of a business due to the late payment of invoices, especially as we are working hard to ensure we save jobs and rebuild our economy in the Western Cape. 

Listen to soundbyte from David Maynier: