Letter to Business Day on why business should prioritise late payments

Yesterday's editorial in Business Day asked the question, is lip service paid to the SME sector? The answer is a resounding YES, for all sorts of reasons the editorial refers to. You can read it here.

This prompted me to write to the Editor to highlight one of the biggest burdens small businesses have to bear - late payments by customers.  You can read my letter here or below.

At the SBI Indaba last week Chairman of BLSA and the CEO Initiative Jabu Mabuza said late payments is an issue big business has to deal with. My question to him and new BUSA chair, Sipho Pityana is: when and how? If they don't give a clear direction on this issue soon I will be requesting the Portfolio Committee on Small Business Development to summon them to account in Parliament in our next term beginning in August.

Dealing effectively with late payments is the flip side of introducing a small business ombudsman, contained in a bill I tabled in Parliament in May. We have to deal with the source of the problem - putting our payments house in order - but also have a back-stop mechanism that deters offenders from repeatedly abusing their suppliers in the first place.

Letter to the Speaker of Parliament about late payment of suppliers

On Friday I wrote to the Speaker of Parliament drawing her attention to the late payment of Duma Travel, which services MPs and Parliamentary staff travel needs. This follows an email I sent to Parliament's Chief Financial Officer last week after I received a tip off that Duma was owed hundreds of thousands of rands. It seems it could have had some effect - since then Parliament has paid around R700 000 to Duma, though over R800 000 is still outstanding.

You can read my letter below.

27 July 2018

Hon B Mbete MP                                            

Speaker of the National Assembly

Parliament of the Republic of South Africa

Dear Madam Speaker

REQUEST FOR URGENT INTERVENTION IN PARLIAMENT’S LATE PAYMENT TO SUPPLIERS

I am writing to you to request an urgent intervention with regards to late payment by Parliament to one of its suppliers.

Interview with The New Economic Rights Alliance about my Ombudsman bill

I  recently conducted an interview with Scott Cundhill of the New Economic Rights Alliance about my bill tabled in Parliament to establish a small enterprises ombud service to resolve disputes involving SMEs.

You can listen to the interview here.

Scott has created a very innovative website which helps small businesses get their invoices paid on time. It's called the Gentle Reminders Club and uses the power of peer pressure and publically displayed ratings of customers' payment records. It's a very neat solution to deal with the problem of late payments at source and business should support it wholeheartedly.

Letter to The Star about late payments of government suppliers

Yesterday's Star newspaper carried my letter to the editor following a front page expose in Monday's paper about government failing to pay its suppliers.

Read the letter below:

Give the small guys a chance

Toby Chance MP

The Star article published on the 9^th of July 2018 titled “State’s R7 billion debt headache” refers. It is inconceivable how, in an economy which is struggling to create jobs, government departments are failing to pay suppliers and small businesses on time for services rendered.

Reports that the state is sitting on 93 000 unpaid invoices highlights a government that does not care about the sustainability of small businesses or the jobs of thousands of South Africans who rely on them to feed their families.

Interview with Cape Talk Kieno Kammies on my private member's bill

On Tuesday 5th June Cape Talk morning show host Kieno Kammies interviewed me about my bill to establish a small enterprises Ombud Service.

You can listen to the interview here.

Supermarket news covers my private member's bill to establish a small enterprises ombud service

The word is getting out to the retail sector about my ombud service bill. Big retailers are some of the worst offenders when dictating payment terms to small suppliers. Even big suppliers are affected as are their own supply chains which negatively affects their suppliers' cash flow. It's a chain reaction and normally in the supply chain the organisation sitting at the top comes out best - retailers take in cash from customers and regularly pay suppliers in 60 days or more so getting a turn on their money.

Read the article in Supermarket News here.

My ombudsman proposal has many features of the UK Grocery Code Adjudicator - more info can be found about this here.

Notes from the House features my private member's bill on the small enterprises ombud service

Parliamentary correspondent Moira Levy has featured an article on my private member's bill to establish a small enterprises ombud service in her newsletter Notes from the House.

This is how they describe themselves:

Notes from the House is an independent weekly digital newsletter that tracks and monitors Parliament in its role of holding government to account and passing legislation to improve people’s lives. It aims to bring you the news from Parliament that you don’t get elsewhere.

You can read the article here.