What you should know about late payments
15-09-2021
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Taranis
Source
Treasury recently released a report highlighting the challenges faced by government suppliers when their invoices are paid late and in particular, the non-compliance with payment of suppliers’ invoices within 30 days.
In 2020 it established a centralized point for suppliers to lodge their complaints to get assistance with their queries.
This unit within Treasury conducts follow-ups, especially with those organs of state, who are listed in the Public Finance Management Act (PFMA), whether the complaint is about late and or non-payment of invoices, respectively.
The “offending” organ of state will have to provide Treasury with reasons for the delay and the date on which the payment will indeed be affected.
The organ of state is also instructed to forward “evidence” to Treasury to confirm that the payment has been affected.
Treasury has also issued a notice to these PFMA entities, to report on the 7th day of each month, as to how many invoices are outstanding beyond the 30-days settlement period, for the preceding month, as well as the reasons for such late or non-payments.
Further, Treasury has now resolved to forced organs of state, to take, “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.”
According to Gerrit Davids, Lead Advisor at TaranisCo Advisory, tendering agency, “Those suppliers who have payments outstanding from PFMA entities, on invoices beyond the 30-day instruction, should send an email to 30daysqueries@treasury.gov.za to lodge their complaints.”
“Where a late or non-payment is caused by a Municipality, it should be lodged with the Chief Directorate at Treasury, monitoring the implementation of the Municipal Finance Management Act (MFMA), which will escalate the complaint to the Chief Financial Officer (CFO) of the relevant Municipality.”
For more details on how to submit compliant tenders under the PPPFA Regulations, visit our website: www.taranis.co.za
Gerrit Davids | Lead Advisor | TaranisCo Advisory CC | Cell. 082 496 1657 E-mail: gerrit@taranisco.co.za
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