PSC’s statement on compliance with the 30 days payment to service providers announced by Minister Malusi Gigaba

22 February 2018

In 2012, the Public Service Commission (PSC) conducted public hearings with stakeholders on compliance with government’s 30 day payment period to service providers across the country. A Report was subsequently released wherein the Commission recommended, amongst others, that Departments must effectively monitor compliance with the 30 day payment period and take action against government officials found to have failed to do so as this matter affects the sustainability of Small Medium Micro Enterprises (SMMEs).

Accordingly, the PSC welcomes the call by the Minister of Finance, Malusi Gigaba in his 2018 budget speech wherein he called for compliance with the Public Finance Management Act (PFMA) and Municipal Finance Management Act (MFMA) in relation to the payment of suppliers within 30 days. The PSC also welcomes the measures put forth by the Minister to strengthen adherence thereof and charge Accounting Officers (AO) with financial misconduct in case of non-compliance.

The PSC will exercise its oversight function in this matter and would like to see effective monitoring and adherence to the 30 day payment instruction included in Performance Agreements (PAs) of Accounting Officers. This should mean that AOs who default will not receive bonuses. The PSC will also summons AOs who fail to adhere to the 30 day payment rule.

Issued by the Public Service Commission

For enquiries, please contact: Humphrey Ramafoko; Public Service Commission; Tel: (012) 352 1196; Cell: 082 782 1730; Email: Humphreyr@opsc.gov.za or Ms Z Jiya; Tel: (0120 352 1070; Cell: 072 311 3500

National Anti-Corruption Hotline: 0800 701 701