The 30-day payment rule will be in the spotlight during an awareness campaign by the MEC for Finance, Motlalepula Rosho. 

Previously the Public Service Commission (PSC) vowed to monitor departments closely on their compliance with the 30-day payment period with any “non-compliance viewed as financial misconduct”. Various service providers have in the past raised their concerns about the delay in payment which mostly led to financial difficulties at these companies with no consequences against the various departments.

MEC Rosho says her department’s awareness campaign will be in compliance with the Public Finance Management Act (PFMA) as an intervention to fast-track payments of outstanding supplier invoices by provincial departments and their entities.

Rosho says the PFMA requires the accounting officer of a department to settle all contractual obligations and pay all money owed, including intergovernmental claims, within the prescribed or agreed period.

“Departments and their entities are not fully complying with the prescribed 30 days-payment rule and this is adversely impacting on the sustainability of the suppliers’ businesses, hence the need for this campaign.

This campaign is in support of Treasury Regulation 8.2.3., which provides that “unless determined otherwise in a contract or other agreement, all payments due to creditors must be settled within 30 days from receipt of an invoice or, in the case of civil claims, from the date of settlement or court judgment,” she adds.

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