Time taken to pay service providers remains “unacceptable”

OCTOBER 30, 2014

The Budget and Treasury Directorate says the number of days taken by directorates to process documentation for payment “remains unacceptable”.

In addition, it says in a report to the Budget and Treasury Committee, this impacts “significantly” on the municipality’s compliance with the Municipal Finance Management Act (MFMA).

Compliance with the MFMA, it adds, is dependent on “all role players within the payment value chain adhering to their respective time frames”.

Budget and Treasury allows 19 days for directorates to process the documentation for payment and points out that not one met this target in September.

The average time taken to process documentation for payment last month was 32 days with the Office of Mayor Ben Fihla having the worse record of taking an average of 119 days.

Budget and Treasury notes, however, that this can be attributed to payments to one service provider that were in ex-cess of 400 days.

Corporate Services, which had the highest number of invoices to process last month (3 102) took an average of 32 days while Infrastructure and Engineering that had the second highest number of 1 522 took 23 days.

Water Services (20 days) had the fastest turnaround time.

Budget and Treasury says that a monthly report is submitted to the Management Team on the outcome of the creditors’ payment process.

In its report on conditional grant expenditure to date for the current financial year, Budget and Treasury reports that only 5.1% of the Expanded Public Works Grant of R5.4 million had been spent by September 30.

Spending on the Integrated National Electrification Grant of R19 million was 37.8% and Urban Settlements Grant 73.9% of R116.2 million.

The Public Transport Infrastructure Grant of R25 million had been overspent by 143.5%. - metrominutes