With only two weeks to go before deadline, the Gauteng Shared Services Centre (GSSC) is still sitting with R727 million in outstanding payments to suppliers. Despite this, the centre is confident it will complete all payments in time for its 30 September deadline.
The GSSC has been battling a R1.7 billion payment backlog, after it failed to pay numerous suppliers since April 2008. The centre is fast-tracking payments through Operation Bhadala, which is the provincial government's initiative to ensure all outstanding invoices for goods and services rendered and delivered are paid.
“Through the operation, we are now at the R927 million mark in total payments to date. This is a significant achievement given the nature of the outstanding matters that had to be dealt with. We are confident that the project remains on course and we should pay the remaining R727 million by the end of the deadline for the operation,” says the GSSC.
The operation, which was announced by Gauteng premier Nomvula Mokonyane, is now in its fourth week. Mokonyane and Gauteng finance MEC Mandla Nkomfe have promised the payment backlog would be cleared by the end of September.
“Our suppliers have heeded the call to come forth and submit the necessary supporting documentation to facilitate payment. The invoices will include those of the current financial year up to 30 June 2009,” the GSSC notes.
Planning ahead
The GSSC also states that new measures have been introduced to ensure future payments to suppliers are made on time.
“We have now put in place a concurrent process that will ensure that we meet our obligations in accordance with the Public Finance Management Act and BBBEE strategy of paying our suppliers within 30 days of receipt of invoices.”
The work of the team leading Operation Bhadala - chief financial officers of all the provincial government departments, and finance and procurement practitioners - might also be extended.
“As part of this exercise, we are considering keeping the War Room Task Team for at least another three to six months so that we hit the ground running with the implementation of the recommendations in the close out report.”
The GSSC says it will report on lessons learnt and what measures have been introduced at the end of the operation to prevent any payment backlogs in the future.
Related story:
GSSC battles R1.3bn backlog
Share