Question NW3100 to the Minister of Finance
06 October 2023 - NW3100
Kruger, Mr HC to ask the Minister of Finance
Whether, with reference to the reply to question 2675 on 1 September 2023 by the Minister of Cooperative Governance and Traditional Affairs and the 2020-21 report of the Auditor-General which stipulates that 84% of municipalities in the Republic failed to pay their creditors within the mandated 30-day period, (a) the National Treasury has conducted a detailed quantitative and qualitative assessment of the resultant socio-economic ramifications, specifically the adverse impact on job losses and business viability for small companies, sole proprietors and cooperatives; if not, why not; if so, what are the relevant details of the (i) assessment and (ii) strategic measures under consideration to rectify the systemic issue?
Reply:
Payments not made within 30 days are in breach of the Municipal Finance Management Act and the oversight over compliance to laws and regulations is that of the Municipal Council. Therefore, the questions should be directed to the respective municipalities as these relate to contractual obligations entered between municipalities and their respective service providers.
The National Treasury has not conducted research or an assessment on the adverse impact of late payments. The Department of Small Business Development has a mandate to promote and develop Small, Micro and Medium Enterprises (SMMEs). It is therefore suggested that the Honourable Member directs this enquiry to them.