PSC: There needs to be consequences for departments that fail to pay service providers

JOHANNESBURG - The Public Service Commission (PSC) said that the late or non-payment of businesses by government is a headache that needs urgent attention.

The commission made the comments following Treasury’s latest report which raised concerns on government’s failure to pay service providers on time.

More than R10 billion in invoices is yet to be paid to companies that did business with national and provincial government in the 2023/24 financial year.

In the previous financial year, the PSC named and shamed several government departments that defaulted on payments to businesses.

Justice and Constitutional development, as well as Public Works and Infrastructure were among the top departments that reported unpaid invoices.

The commission has again raised red flags about the adverse effect that government’s late and non-payment has on businesses.

PSC Commissioner Anele Gxoyiya said that government must take accountability for falling back on its agreements.

"When a department enters into a contract, as much as they are swift to terminate contracts of service providers or suppliers who do not deliver, they must also be quick to pay those who deliver on time."

He said that there needs to be consequences for accounting officers who fail to pay service providers within 30 days of receipt of an invoice.