Pay suppliers on time or be charged

Wednesday, February 21, 2018

National Treasury will issue a directive to all government departments and public institutions instructing them to pay suppliers within 30 days, Finance Minister Malusi Gigaba said on Wednesday.

“Next week, the Director General of National Treasury [Dondo Mogojane] will issue a directive to all government departments and public institutions, instructing them to pay suppliers on time, or be charged with financial misconduct,” said the Minister.

Tabling his maiden Budget Speech in the National Assembly, Minister Gigaba said the payment of suppliers on time is regulated by the Public Finance Management Act (PFMA) and Municipal Finance Management Act (MFMA).

“This must be monitored by accounting officers and National Treasury will strengthen oversight mechanisms in this regard. We will work with colleagues in all spheres of government to improve performance of public entities on this critical issue,” said the Minister.

Value for money and efficiency in spending remain critical in the drive to ensure the effective management of public resources, he said.

This as Treasury is currently rolling out the strategic procurement framework that provides for a differentiated approach of procurement based on the characteristics of each commodity.

Meanwhile, over the course of the current financial cycle, government has engaged the Auditor General as part of amending the Public Audit Act.

“This was occasioned by the worrying trend we see in rising unauthorised, irregular, fruitless and wasteful expenditure. We will finalise the process this year, to address these issues effectively,” said the Minister. – SAnews.gov.za

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