FIVE Gauteng departments have failed to pay all their service providers.
This was revealed by the provincial Treasury on Monday, 12 May.
Giving a broad overview of Gauteng Government's state of finances and the expenditure report, Finance and Economic Development MEC Lebogang Maile said as at the end of Quarter 4 of the 2024/2025 financial year, nine of the 14 provincial departments have achieved 100% compliance with the payment of service providers' invoices.
These departments are, the Office of the Premier; Roads and Transport; Community Safety; Human Settlements; Department of Economic Development; e-Government; Sports, Arts, Culture and Recreation; the Cooperative Governance and Traditional Affairs; and the Gauteng Provincial Treasury.
He said Social Development was able to pay 98% of invoices within 30 days, while the number stands at 88% for Infrastructure Development, when client departments are excluded.
The Agriculture and Rural Development and Education departments paid 71% and 80%, respectively, of invoices, within 30 days.
The Gauteng Department of Health is the worst performer.
It paid only 21% of service providers' invoices.
"The Gauteng provincial government is committed to ensuring compliance with the legal obligation to ensure that payments due to creditors, including intergovernmental claims, are paid within 30 days," said Maile.
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He said this isn't only an expression of respect for the law, but also because the government recognises that the timely payment of invoices is crucial for the health of the economy, especially for small, medium and micro-enterprises (SMMEs) who rely on government payments to sustain their businesses.
"Where compliance is not at 100%, the Gauteng provincial government will continue to develop, implement and monitor instruments to facilitate improvements," he said.
Maile said it's important to state that whatever funds can't be motivated will revert to the Provincial Revenue Fund (PRF).
On reports that the provincial government has underspent by R1,8 billion, and that these underspent funds would be returned to the national Treasury, he said the concern that the underspent resources will no longer be available, or that they are lost by the government is a misunderstanding that needs clearing up.
"The starting point for understanding the expenditure that we will be presenting today is to understand what the Provincial Revenue Fund is. A Provincial Revenue Fund (PRF) is a financial account for each province in South Africa, where all revenue received by the provincial government is deposited, with some exceptions. The fund covers revenue from various sources, including taxes, fees, and transfers from the National Revenue Fund.
He said the PRF is managed by the provincial treasury.
"The provincial treasury ensures compliance with regulations. To this end, money can only be withdrawn from the fund through specific appropriations or as direct charges, as outlined in the Constitution and provincial legislation," he said.
