The Public Service Commission (PSC) has identified the Department of Defence as the leading national department in late supplier payments, with overdue invoices amounting to R348 million in the second quarter of the 2024/25 financial year. Despite showing some improvement from the previous quarter, only 19 of the 42 national departments fully complied with legislation requiring timely payment of supplier invoices.
National Departments' Payment Performance
At the end of the second quarter, national departments paid over 40,500 invoices late, with a total value of R752 million. Additionally, 2,133 invoices, valued at R265 million, remained unpaid for over 30 days, further disadvantaging suppliers.
Commissioner Anele Gxoyiya emphasized the need for improved compliance, stating, “The number of invoices paid after 30 days, which means the invoices were paid but were paid late, by the national departments was 40,562, and the rand value of those invoices is R752 million. The number of invoices older than 30 days but not yet paid at that time by the national departments was 2,133 invoices, valued at R265 million. These delays affect many individuals and businesses.”
Department of Defence's Performance
The Department of Defence continued to perform poorly in this area. Between July and September, it accounted for over 35,500 late payments, totaling nearly R350 million. This follows its first-quarter record of 18,496 overdue invoices, which represented 61% of all late payments by national departments.
Grievances and Resolutions
During the same period, the PSC registered 275 grievances, with 62% resolved by the end of September. About 95% of the grievances were filed by employees, primarily citing unfair treatment, including harassment and bullying.
Areas of Improvement
Despite the challenges, the PSC noted progress in resolving pension payouts and social grant payments. The Commission reiterated its commitment to accountability and professionalization within the public service, stressing that these improvements must extend to all areas of service delivery.
Call for Accountability
The PSC has called for greater adherence to legislation governing payment timelines to ensure that suppliers, many of whom are small businesses, are not unduly disadvantaged. These delays not only impact business operations but also undermine trust in the public service sector.