https://www.polity.org.za
Deepening Democracy through Access to Information
Home / Statements RSS ← Back
Business|Financial|Service|SMS|supply-chain|System|transport
Business|Financial|Service|SMS|supply-chain|System|transport
business|financial|service|sms|supply chain|system|transport
Close

Email this article

separate emails by commas, maximum limit of 4 addresses

Sponsored by

Close

Article Enquiry

The Department of Transport, fails to pay almost 800 businesses on time

Close

Embed Video

The Department of Transport, fails to pay almost 800 businesses on time

1st June 2023

ARTICLE ENQUIRY      SAVE THIS ARTICLE      EMAIL THIS ARTICLE

Font size: -+

/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The Portfolio Committee on Transport (PCoT), Tuesday May 30, 2023, was horrified to learn that the ANC-led government through the Department of Transport (DoT), is killing small micro-medium enterprises (SMME), by failing to pay almost 800 SMME’s on time. The Deputy Minister of Transport Lisa Mangcu MP, admitted that his department could not pay these invoices within the Treasury stipulated and cabinet endorsed 30 days.

Seven hundred and ninety-three (793) invoices were paid late during the period under review: with five hundred and ninety-three (593) during Quarter Four of 2022/23. Of these, five hundred and thirty-three (533) invoices were processed late due to the unavailability of the BAS system. What is perhaps more infuriating and concerning is that one hundred and ninety-two (192) of these invoices were paid late due to the unavailability of a delegated official to sign-off on the invoices. This is just pure negligence and dereliction of duty at the highest level.

Advertisement

Furthermore, twenty (20) invoices were late due to the slow system. Forty-three (43) invoices were not paid as a result of the unavailability of a LOGIS authoriser, again unacceptable behaviour.

Essentially one official from the department may be responsible for threatening almost 200 businesses, all because of ineptitude and incompetence. This is definitely not a reflection on the said official however, it is a true reflection on the leadership of the department, both political and administrative. A further confirmation that the department is struggling and is running a chaotic operation, with no end in sight. The Director General, Adv. Mlawu, as the accounting officer and head of administration, must urgently take corrective measures and hold accountable the non-performers.

Advertisement

Small businesses are the lifeblood of the economy, cashflow is the fuel that keeps them afloat. Having met the service level agreement and delivered their commitments to the department, the department could not honour their end of the deal. Given the state of our economy, and the unemployment rate at about 42%, the department is simply a threat to the economy instead of being a catalyst to encouraging entrepreneurship.

Other issues identified in the report, which further shines the spotlight on the relaxed approach to management by Departmental leadership, is the fact that the ethics risk assessment found that, the department has a challenge of officials at supply-chain management system (SMS) not disclosing their financial interests. As well as departmental staff that are prone to late coming and knocking off early without consequences.

The DA is giving the Department 30 days, to come back and comprehensively brief the PCoT, on the corrective measures as well as firm consequence management. Failure to do so, we will be taking the following measures.

Writing to the Presidency:

Specifically, to the Office of the Deputy President, as Leader of Government business, to urgently address the departmental political leadership.

Presidency Director General and Secretary to Cabinet, Ms. Phindile Baleni to intervene and address the management deficiencies of the accounting officer of the department.

Writing to the Minister in the Presidency responsible for Planning, Monitoring and Evaluation, Maropene Ramokgopa, to flag these issues and for action to be taken.

 

Issued by Thamsanqa Bhekokwakhe Mabhena - DA Shadow Deputy Minister of Transport

EMAIL THIS ARTICLE      SAVE THIS ARTICLE ARTICLE ENQUIRY

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here

Comment Guidelines

 

About

Polity.org.za is a product of Creamer Media.
www.creamermedia.co.za

Other Creamer Media Products include:
Engineering News
Mining Weekly
Research Channel Africa

Read more

Subscriptions

We offer a variety of subscriptions to our Magazine, Website, PDF Reports and our photo library.

Subscriptions are available via the Creamer Media Store.

View store

Advertise

Advertising on Polity.org.za is an effective way to build and consolidate a company's profile among clients and prospective clients. Email advertising@creamermedia.co.za

View options
Free daily email newsletter Register Now