The opposition party Democratic Alliance doesn’t fail to point out the weaknesses of the ruling party where necessary and this comes up once more as they have trashed the government for failing to pay over 7 billion rands to small businesses within the stipulated 30-day period. The party further stated that the state was facing collapse, with its inability to pay service providers as well as managing appointments, taking disciplinary action, combating wasteful expenditure and preventing corruption.
The criticisms is coming after Khumbudzo Ntshavheni, the Minister for Small Business Development revealed the massive amount owed to small businesses in a written response to a Parliamentary question by DA MP Leon Schreiber about the value of the government department’s backlog for paying service providers within 30 days in compliance with the provisions of the Public Finance Management Act.
Ntshavheni said the National Treasury’s 2018/19 annual report showed that invoices older than 30 days and not paid by national departments at the end of the last financial year, amounted to a shocking R634million. she admitted that a staggering 6.5 billion rands was not paid by provincial departments within the stipulated time during the same period.
The MP also said while the ANC government could not pay service providers timeously, it seemed to have no problem paying billions to public servants illegally doing business with the state. He said “Treasury’s 2018 public procurement review found that 2704 state employees conducted business with national and provincial departments between April 1, 2017 and January 31, 2018,” he said, adding that R8.1bn of public funds was paid to public servants who illegally conducted business with the state.
He noted that Public Service and Administration Minister Seno Mchunu had indicated in a written response to his parliamentary question that not a single public service employee was held accountable or fired for doing business with the state; this happened against the backdrop of R26m spent on the salaries of public servants who were placed on “precautionary suspension”, as of June this year. He said “The DA reiterates our call for a comprehensive public spending review. We will also continue fighting for fundamental reforms that create a lean, efficient and capable state that creates opportunities for South Africans to prosper,”