The number of invoices national departments failed to pay within 30 days reached 30,571 — valued at R1.7bn — in the first quarter of 2024/25, the Public Service Commission (PSC) said on Monday.
In its April-June quarterly bulletin, “The Pulse of the Public Service”, the PSC said that in addition 1,651 invoices worth R97m older than 30 days had not been paid by national departments.
The PSC is constitutionally mandated to promote a high standard of professional ethics and to investigate, monitor and evaluate public administration practices in the public service.
The late and/or nonpayment of invoices by the government after the stipulated 30 days has been criticised as it affects the financial viability of small businesses and their ability to create jobs in the face of high unemployment and low growth.
“All national departments submitted their exception reports on the payment of suppliers’ invoices to the National Treasury, as required by National Treasury instruction No 34, during the first quarter of the 2024/25 financial year which shows an average timeous submission rate of 85%.
“This, however, represents a regression when compared with the average timeous submission rate of 87% achieved in the fourth quarter of the 2023/24 financial year,” the PSC said in the bulletin.
The defence department had 18,496 invoices valued at R268.8m paid after 30 days during the period under review, the correctional services department account had 4,591 invoices worth R448.7m, and basic education 880 invoices (R269m).
The office of the chief justice had 332 invoices paid after 30 days valued at R11.8m, while the police department had 311 (R71.7m), justice & constitutional development 211 (R3.5m), transport 917 (R6.1m), agriculture, land reform & rural development 764 (R167.4m), water & sanitation (trading account) 167 invoices (R861,730), and public works & infrastructure (trading) 3,537 invoices worth R224.7m.
“The above departments are the top 10 contributing departments with the highest number of invoices paid after 30 days during the first quarter of the 2024/25 financial year. However, out of 42 national departments, only 17 departments fully complied with legislation of timeous payments,” the PSC said.
“These 17 national departments did not have outstanding or unpaid invoices for the period under review. Departments that consistently comply with this legislation are commended and departments that are appearing for the first time in this list are encouraged to continue and maintain this performance and pay all legitimate invoices from suppliers timeously or within 30 days as required by the Public Finance Management Act and its related prescripts.”
The PSC said as at June 30 it registered 177 grievances, including 78 carried over from the previous financial year. “Of the 177 grievances, 68 (38%) have been concluded, and 109 (62%) remained pending as at end of June 2024.”
It noted about 95% of grievances were referred to the commission by employees, with the rest by executive authorities.
“The referral of grievances by employees is an indication that departments have failed to resolve these grievances internally within the prescribed time frames.”
The majority of the referred grievances related to unfair treatment, filling of posts, performance assessment and salary problems.
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