Tuesday, 28 August 2018

Letter to Hon Bathabile Dlamini, Minister of Women in the Presidency, re late payment of supplier

This morning I wrote to the Minister of Women in the Presidency, Bathabile Dlamini MP, drawing attention to her department's late payment of invoices from a supplier, Duma Travel. This is the same company who came to me for help some weeks ago when trying to get their outstanding payments due from Parliament for travel services rendered. I wrote to the Speaker  and the Chief Financial Officer of Parliament demanding their attention to the matter and I am pleased to say some outstanding payments were made soon after that. But they still owe Duma Travel money.


I copied the Minister of Planning, Monitoring and Evaluation, Dr Nkosazana Dlamini-Zuma, on my letter to Minister Dlamini. She is responsible for monitoring government department payments to suppliers and for ensuring payments are made within 30 days of invoice or according to contractually agreed terms. As a former member of the Portfolio Committee on Small Business Development, she will be aware of the problems small businesses face in getting paid by government.


28 August 2018
Hon B Dlamini MP                                         
Minister of Women in the Presidency

Dear Minister Dlamini
REQUEST FOR URGENT INTERVENTION IN YOUR DEPARTMENT’S LATE PAYMENT TO SUPPLIERS
I am writing to you to request an urgent intervention with regards to late payment by the Department of Women in the Presidency to one of its suppliers.

In terms of the Public Finance Management Act, government departments are expected to pay suppliers within 30 days of invoice yet your department has been shown to be delinquent in fulfilling this obligation.

One such case is Duma Travel, an SMME that provides travel services to your department and is currently struggling to receive payment due to it. I attach its statement dated 16th August 2018 indicating payments due amounting to R673,086.07

In light of the abovementioned facts and the relevant legislation, including a circular from Treasury dated 28th March 2018 (attached) I request that you, as the minister responsible, take the necessary steps to instruct your department’s Chief Financial Officer, Mrs Desree Legwale, to settle outstanding amounts due to this company and any other companies that have invoices that remain unpaid for more than 30 days. Furthermore, I request that your institute disciplinary proceedings against Mrs Legwale for failing to implement the provisions of the relevant legislation.

A copy of this letter is being forwarded to the Minister of Planning, Monitoring and Evaluation, Dr N Dlamini-Zuma, who is responsible for ensuring government departments pay suppliers on time.

I trust that you will consider my request favourably and attend to this matter with the requisite urgency.

Yours Sincerely,

Toby Chance MP
Shadow Minister of Small Business Development
Member of Parliament for Soweto West

CC The Hon Dr N Dlamini-Zuma, Minister of Planning, Monitoring and Evaluation

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