In a detailed report by the National Department of Treasury, the invoices were supposed to be settled by at least the end of the financial year 2021/22.

The Western Cape was the only one that entered the current financial year (2022/23) without any outstanding invoices. The Free State is one of the provinces that ended the previous financial year with nearly 900 unpaid invoices, which amounts to over R72 million. The Free State did, however, manage to settle over 6 000 invoices amounting to over R1 billion, albeit after the prescribed 30 days.

The total number of invoices older than 30 days, not paid by provincial departments by the end of the 2021/22 financial year, amounted to 67 728 invoices, amounting to the value of R6,145 billion. The North West recorded 7 137 outstanding invoices, which amounts to R609 939 216. Whereas the Northern Cape has 8 498 outstanding invoices, amounting to R153 601 137. The report shows that a regression has been noticed when it comes to the provincial departments’ previous financial year’s (2021/22) late and outstanding invoices, compared to the 2020/21 financial year – when there were 37 506 invoices amounting to R 5,3 billion.

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There has also been a noticeable regression by the provincial departments in 2021/22 in the number of invoices paid after 30 days, which amounted to 263 359 invoices worth R29 billion when compared to 227 190 invoices to the value of R26 billion paid in the 2020/21 financial year.

The report also states that there is a noticeable trend that the number of invoices not paid within the prescribed 30 days by provincial departments, is always at the highest towards the end of the financial year, that is in March and the beginning of the financial year, that is in April and May. The Free State settled 6 493 invoices to the value of R1 350 930 117, while the Northern Cape settled 7 015 invoices, which amounted to R727 227 45. In the North West, 54 453 invoices were settled, which amounted to R3 352 948 182.

Some of the common reasons identified from the report why invoices were unpaid or paid late, include misfiled, misplaced, or unrecorded invoices; inadequate budget and/or cash flow management problems; and inadequate internal capacity.

To lessen late and/or non-payments, the National Treasury has given a few recommendations to provincial departments that includes payment of invoices within 30 days be included in the performance agreements of accounting officers, chief financial officers, and other officials working in this area; disciplinary actions against officials who fail to comply with the requirements to pay invoices within 30 days and who undermine the systems of internal control; and that payment of suppliers within 30 days be a standing agenda item for discussion at every EXCO meeting of departments.

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