PSC Commissioner Calls for Improved Invoice Payment Compliance Across Govt Departments

Gxoyiya mentioned that the reasons for delays and non-payment of invoices were varied but often stemmed from internal issues within the departments.

Anele Gxoyiya, the Commissioner of the Public Service Commission (PSC), has applauded government departments that are adhering to legislation ensuring the timely payment of suppliers. Gxoyiya emphasized that these departments should be praised for their ongoing efforts to comply with the Public Finance Management Act (PFMA), which requires all invoices from legitimate suppliers to be paid within 30 days. He encouraged these departments to maintain their excellent performance to ensure a continued positive relationship between the government and its suppliers.

In a media briefing held earlier today in Pretoria, Gxoyiya presented the third-quarter results for the 2024/25 financial year, revealing that national departments had successfully processed and paid 38,153 invoices, totaling approximately R1 billion, within the required timeframe of 30 days. However, the report also highlighted a significant challenge, with 4,993 invoices, valued at around R442 million, still left unpaid after 30 days, presenting a concerning gap in compliance.

Notably, the Department of Defence emerged as the highest contributor to the backlog of unpaid invoices during the third quarter, with 30,355 invoices, valued at over R456 million, paid later than the required 30-day window. This department had already been identified as a consistent transgressor in the previous two quarters, with averages of 61% and 80% of invoices being paid late during the first and second quarters, respectively.

Gxoyiya mentioned that the reasons for delays and non-payment of invoices were varied but often stemmed from internal issues within the departments. Some common explanations provided included misfiled or misplaced invoices, as well as poor internal controls and insufficient record-keeping processes. He stressed that such delays were not only damaging to supplier relationships but also represented a breach of the legal requirements set out in the PFMA.

As of the end of the third quarter, the cumulative figures for unpaid invoices remained alarming. A total of 76,154 invoices, worth over R8 billion, were paid late across all national departments, while 94,914 invoices, amounting to over R12 billion, had not been paid at all beyond the 30-day deadline. Gxoyiya expressed his concern over these figures, noting that this ongoing failure to comply with the PFMA was not acceptable.

The PSC, as a regulatory body, is set to take further steps to address the issue, including engaging the Office of the Auditor-General to explore ways of implementing consequence management. Gxoyiya emphasized the need for stronger accountability for Accounting Officers, particularly in cases where queries are delaying payment, and warned that failure to comply with the legal requirement would result in increased scrutiny and potential penalties.

To further assist suppliers and address concerns about unpaid invoices, the National Treasury has introduced a centralized email platform, 30daysqueries@treasury.gov.za. This platform allows suppliers to submit their payment queries directly to the Treasury, which will follow up with the relevant government departments to obtain feedback and resolve outstanding issues. Gxoyiya encouraged suppliers to make use of this communication channel, which will be instrumental in ensuring that unpaid invoices are addressed promptly.

In addition to this, the National Treasury is also committed to raising awareness among suppliers about the dedicated email platform and other communication methods. Gxoyiya urged the Treasury to intensify their engagement with service providers on various platforms, helping to raise visibility about the importance of timely payments and making the payment dispute resolution process more efficient.

The PSC’s ongoing efforts to monitor and enforce compliance with the PFMA are aimed at improving the overall financial health of government departments and ensuring that suppliers are not left in financial distress due to delayed payments. Gxoyiya concluded his address by reiterating that the timely settlement of invoices is a fundamental aspect of government’s responsibility to its service providers and the South African economy as a whole.