Government Late on R61 Billion in Supplier Payments

This article will count 0.25 units (15 minutes) of unverifiable CPD. Remember to log these units under your membership profile.

The latest Annual Report on Non-Compliance with Payment of Supplier’s Invoices Within 30 Days (2024/25) paints a worrying picture for South Africa’s public finance credibility and small business health.

Despite long-standing Treasury regulations, late and unpaid supplier invoices are increasing, with small and medium enterprises (SMEs) hit hardest by cash flow delays.

The Numbers: Worse Than Last Year

• 464,188 invoices were paid late (after 30 days), totalling R43.6 billion

• 142,801 invoices remain unpaid and overdue, valued at R18.2 billion

• That’s a 28% increase in late payments and a 24% rise in unpaid invoices compared to the 2023/24 financial year

Who’s Not Paying?

• Provincial departments are responsible for 69% of late payments and 98% of unpaid invoices

• Worst performers:

  • Gauteng: 93,861 late invoices worth R10.6 billion

  • KwaZulu-Natal: 75,031 invoices worth R11.2 billion

  • Eastern Cape: 63,037 unpaid invoices worth R5.1 billion

• At national level, the Departments of Defence, Correctional Services, and Public Works (Trading Account) remain top offenders for delayed payments

Why the Delays?

Departments cited familiar issues:

• Inadequate budgets and cash blocking

• System failures (e.g., BAS, LOGIS)

• Disputed invoices, missing paperwork

• Poor internal controls and capacity

• Manual and outdated invoice tracking

These are not new. Many departments have been giving the same reasons for years, despite repeated recommendations from Treasury.

Treasury’s Response

• 314 supplier complaints were received in 2024/25, worth R314 million

• Treasury helped resolve 76 queries valued at R21 million

• A new automated invoice-tracking system is in development, aiming to go live in the 2026/27 financial year

• A revised Treasury Instruction on 30-day payments is due for release in 2025/26

What You Can Do to Assist Clients

If you work with SMEs or in the public sector, these issues aren’t just stats, they impact your clients’ cash flow, solvency, and sustainability.

✔️ Help clients escalate complaints: 30daysqueries@treasury.gov.za
✔️ Reinforce strong internal payment controls
✔️ Track client invoices against these government trends

Accountants have a crucial role to play in pushing for accountability and supporting suppliers navigating delays.