Chamber welcomes Governments commitment to speed-up payments

A commitment by the Government to speed up payments to suppliers, particularly those in the small business world, was welcomed by the Cape Chamber of Commerce and Industry.

“Late payments from National and provincial departments has been a major problem for business and we really don’t see any reason why the 30-day goal cannot be met,” said Ms Janine Myburgh, President of the Chamber.

She was reacting to the acknowledgement by Minister Jeff Radebe that late payments were a problem that the Government was monitoring and trying to improve.

“Public servants don’t always understand that delays cost money and that businesses have to borrow and pay interest while they wait for payment. Businesses fail because of outstanding debt,” she said.

Ms Myburgh welcomed the five percent improvement in the number of accounts paid by national departments within the 30-day period but was alarmed by the deteriorating situation in the provinces where performance had slipped back by 52%.

Figures supplied by the Minister revealed that more provincial accounts were not paid within the stipulated period than were actually paid and that 356 000 invoices worth R21.8 billion were paid late.

“It is very difficult to run a successful business in these circumstances. Prompt payment is one of the basics of good public service and we should be looking at a few exceptions to the 30-day rule and not at a large scale failure to meet the target,” Ms Myburgh said

Full Article: Cape Chamber of Commerce » » Chamber Releases – Chamber welcomes Governments commitment to speed-up payments – Dean

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