Government departments owe more than R90m to 3,000 companies

National government departments owed more than 3,000 companies over R90m by the end of December. 

This is according to the Pulse of the Public Service Commission Report on the state of the public service between October 1 and December 31.

The report revealed that 3,186 government suppliers were not paid for their services by national departments at the end of December, amounting to a debt of R90,807,367.

In November, 2,757 suppliers were owed just over R86m due to non-payment, while in October 659 suppliers were owed over R15m .

''Late or nonpayment of government suppliers may lead to the failure of businesses to meet their overhead costs such as payment of salaries which in turn may lead to retrenchments and business closure, all of which will adversely affect the economy,'' read the report. 

The national departments of health, tourism, public works and infrastructure and Statistics SA were the biggest transgressors. 

The health department owes R56m to about 1,997 suppliers and tourism owed R1.7m, public works (R22.6)  and StatsSA (R9m). 

''The departments of health, tourism and public works and infrastructure and Statistics South Africa contributed the most to the number of unpaid invoices with more than 250 invoices. It is further disconcerting that the department of defence did not submit the report in November 2022. The late and non-submission of the exception reports by departments shows disregard for their legal obligations and the late or nonpayment by departments demonstrates little care for the plight of small businesses and their struggles,'' read the report. 

Meanwhile, provincial government departments owed a total of R5bn to 35,632 suppliers by December.

The report said the Eastern Cape, Gauteng, North West and the Northern Cape provinces were the main defaulters. Eastern Cape departments owed 14,963 suppliers more than R2bn while Gauteng departments owed 10,621 suppliers more than R1.6bn and North West had a debt of R398m to 4,449 suppliers.

The Northern Cape owed 2,459 suppliers more than R146m. 

''Of great concern is the Limpopo province which did not submit the November 2022 report to Treasury,'' read the report. 

kokam@sowetan.co.za