Government departments continue to delay paying service providers

National News/ 27 November 2019, 09:46am /Sompane Molefi

Union Buildings: Image Supplied 

Bloemfontein: The Public Service Commission has once again reported that Government departments continue to delay paying service providers on time adding to many providers leaving their appointed services while others get forced to be out of operations.

The Insider understood that Cabinet had decided in its Lekgotla that government should cub the renege in paying for services especially if there has been service rendered.

This was raised during Presidential investment summit held recently in Sandton, Johannesburg where numerous business called on the President Cyril Ramaphosa to intervene.

Among the Provinces where service providers shown dissatisfaction over the payment delay is Free State which recently found non clean audit in all of its departments.

In the past the Premier Sisi Ntombela had also promised to ensure that those doing business with state will be paid on time.

Ntombela acknowledged that: “There are many service providers and were closing down or losing just because there are delays on our side.”

The Insider spoke to few service providers on a condition of anonymity who said: “Its so difficult because we wait over 45 days waiting for payment.”

“I have lost the fleet of pick up trucks just because of the late payment by government and it’s hurting that there would be long processes before a company can be paid,” said the other one.

The other service provider indicated that his company was facing liquidation and he also had to retrench 10 workers, because of he had no money to pay them, as the government delays to pay him.

“I have done projects with government even now am still waiting for the payment, is more than 4 Months since i have completed the projects, now i had to retrench my employees simply because am unable to pay their monthly salaries.

My company also is facing liquidation, i can’t cope anymore, this payment delay is killing our businesses, government always encourage us to create job opportunities, but they fail to pay us in time, how do they expect us to run our business?” Said one of the service providers.

Government is set to announce new time frame for service providers payments and this is expected to be gazetted