Payment by the Department of International Relations and Cooperation to suppliers and service providers within the 30 day payment period as specified by the Public Finance Management Act (PFMA), Act 1 of 1999
FOR WRITTEN REPLY
QUESTION NO: 1763 (NW2154E)
PUBLISHED IN INTERNAL QUESTION PAPER NO 20-2012 OF 27 JULY 2012
1763. Mr S Esau (DA) to ask the Minister of International Relations and Co-operation:
Whether (a) her department and (b) all entities reporting to her make payment to (i) suppliers and (ii) service providers within the 30 day payment period as specified by the Public Finance Management Act (PFMA), Act 1 of 1999; if not, in each case, (aa) how many service providers are awaiting payment, (bb) what is the monetary value of outstanding payments and (cc) how long is payment overdue;
whether (a) her department and (b) all entities reporting to her are liable for any interest charged on overdue payments in any of the cases mentioned; if not, what is the position in this regard; if so, in each case, what is the (i) percentage and (ii) monetary value of interest charged;
whether (a) her department and (b) all entities reporting to her have negotiated revised payment schedules with each of the service providers mentioned; if not, why not; if so, in each case, what are the relevant details;
what are the reasons for (a) her department and (b) all entities reporting to her not making payment within 30 days as specified by the PFMA;
Whether (a) her department and (b) all entities reporting to her have implemented any measures to (i) ensure full compliance with the PFMA and (ii) facilitate immediate payment for overdue accounts; if not, why not; if so, in each case, what are the relevant details? NW2154E
1. Whilst the Department strives to process payments to Service Providers within 30 days time period, there are cases where the time period was not complied with.
(aa) as at the 06th of August 2012 there are 26 suppliers that are awaiting payment.
(bb) the monetary value of the outstanding payments is R920 207.51
(cc) the payments that are overdue range from a period of 30 days to 90 days.
2. The Department has not been billed any interest on those payments.
The Department have not negotiated any revised payment schedules with the service providers as all the outstanding payments are being finalised.
Reasons for the department not making payment within 30 days
Irregular and unstable performance of the LOGIS procurement system.
Banking details inactive due to service providers changing their details without notifying the Department.
Incomplete/insufficient documents submitted to the Department for payment
5. Control Measures to ensure full compliance with the PFMA,
The Department is currently engaging with SITA through the ICT section to address the issue of irregular and unstable performance of the LOGIS system. Furthermore, the officials within Supply Chain Management are currently working extra hours to ensure that payments are processed after hours, when the system is more stable.
Regular follow-ups with service providers to submit invoices on all the services rendered, and at the same updating their banking details.
Service Providers are encouraged to ensure that the order numbers are obtained from the Department prior to the services being rendered.
A checklist has been implemented by Supply Chain Management at DIRCO to ensure that all documents submitted for payment are complete and compliant with the relevant SCM prescripts in order to speed up processing.
Training is being provided to the different stake holders within DIRCO on compliance with proper procurement processes and payment process.
No payments are outstanding to suppliers in respect of the African Renaissance Fund