Dear Honourable President
Dear Honourable President of The Republic of South Africa
On behalf of both Small Businesses and Procurement Professionals in the country, we would like to thank you for your Leadership in dealing COVID-19 pandemic especially minimising the negative impact it is having on the most vulnerable of our society.
We are however saddened by the action of many Corporates, State Organs and Government departments in dealing with outstanding and legitimate invoices from small businesses. Many Procurement department personnel are at home and have dumped legitimate outstanding invoices for services rendered/products delivered and are not willing to process these. Many are saying that they do not have access to the payment (ERP) systems and that individuals with authority to approve such, are at home and are unable to process invoices.
The impact to small businesses in the country is far reaching and exacerbate the already dire situation of small businesses and their employees.
We therefore request your Excellency to please instruct all government departments to implement the following measures with immediate effect:
- Finance and Procurement officials that are responsible for processing invoices to be declared an essential service.
- Finance and Procurement officials must be instructed to go back to work with immediate effect.
- Immediate payment of all legitimate invoices. National Treasury and the Accounting General can be co-opted to assist where the is a need.
Similar initiatives were implemented in other countries such as in Botswana, where the President announce the following:
“To facilitate doing business and keep the economy running, President Masisi said:
- All Government institutions will pay Government Purchase Orders (GPOs) within five (5) days and parastatals will pay within 24 hours;
- the efficiency of procurement processes would be improved;
- Government will pay all outstanding arrears for invoices within two (2) weeks and extended the validity period for GPOs and;
- VAT refunds to businesses will be expedited to assist with cash flow.”
We hope to see these measures being promulgated and implemented with immediate effect and we stand ready to assist you in developing and implementing these measures.
CEO – TK Global Experts
Chairman – Pan African Supply Chain Council