The Gauteng Roads and Transport department owes R178 million to 240 companies that have not been paid within the specified 30 day period.
This was revealed by Gauteng Roads and Transport department MEC, Ismail Vadi, in a written reply to my questions in the Gauteng Legislature.
Of the 240 companies, 51 companies are owed R35 million for more than 90 days and nine companies are owed R3.7 million for more than six months.
Eight suppliers have pursued legal action against the Department for debt recovery including the 2010 FIFA World Cup organisers.
The main reason offered by MEC Vadi for this unsatisfactory state of affairs was cash flow problems. The Gauteng Roads and Transport department had its budget slashed by 34% this year to prop up the poorly managed and under-resourced Gauteng Health Department which is in dire financial straits.
Until trained, efficient and capable managers are employed at our health facilities; ‘stealing’ money from other departments to prop up badly managed health facilities merely escalates and diversifies the problem rather than solving it.
Gauteng Finance MEC, Mandla Nkomfe, needs to crack the whip to ensure financial discipline in all departments so that all companies arepaid within 30 days.