PPEs unpaid after 120 days

10 November 2020

Note to Editors: Please find attached soundbites in English & Afrikaans from Fawzia Rhoda, MPL. 

In the two months since the Democratic Alliance (DA) in the Northern Cape launched a campaign to shine the spotlight on the non-payment of SMMEs by government, we have continued to be inundated by numerous complaints of private business owners. While the Northern Cape provincial government talks a good talk on prioritising payments to suppliers within thirty days, it still fails to walk the walk.

Recently, we’ve been alerted to the ongoing non-payment of a supplier of PPE in the Umsobomvu Local Municipality. This supplier provided essential sanitisers and cleaning materials to the Richmond Hospital, the Manne Dipico Hospital in Colesberg, and the Umso High School in Colesberg. Without these necessities, none of these institutions would have been capable of delivering critical services to the public at this time of crisis.

Although goods were delivered without any delay, payment in full has been delayed for four months now. The Richmond Hospital now owes the supplier payment for more than 120 days. The Umso High School now owes 95% of its payment for more than 120 days, with an additional 2% owed for more than 90 days and the remaining 3% owed for more than 60 days.

Likewise, just over 30% of the R65 200 owed to the supplier by the Manne Dipico Hospital is now owed for more than 120 days, with the remaining R45 300 owed for more than sixty days.

These payment periods are far beyond the limits set by government, set by ordinary business practice, and set by common decency.

It is never fair for SMMEs to carry the financial burdens of any provincial department. Given the current economic crisis in the country, with pre-existing problems worsened exponentially by economic restrictions of the lockdown, it is no exaggeration to say that SMMEs will collapse and our provincial economy will be ruined if government does not pay its bills.

We call on SMMEs who find themselves in similar dire straits to send the details of non-payment and outstanding arrears owed by government to [email protected]. We urge you to step forward, irrespective of your own political views, and to help us find a way to help you.

For the Northern Cape to find its way to post-pandemic economic recovery, we all need to work together.

Issued by Fawzia Rhoda, DA Northern Cape Provincial Spokesperson for Finance, 10 November 2020