e-Invoicing system critical to ensuring suppliers are paid on time

Issued by Adriana Randall MPL – DA Shadow MEC for Finance and e-Government
08 Oct 2019 in Press Statements

The Democratic Alliance is concerned that the Department of Agricultural and Rural Development is only at a 63% compliance rate when it comes to e-invoicing.

This despite the department not having any capacity constraints.

This was revealed by the Gauteng MEC for Agriculture and Rural Development, Kgosientso Ramokgopa, in a written reply to my questions tabled in the Gauteng Provincial Legislature for written reply.

According to the MEC the department has been using the e-invoicing system since 22 January 2008.

In addition, of the 1 262 invoices received by the department, 801 were processed through the e-invoicing system and only 461 payments were processed as non-purchased order-based payments.

These are for payments such as water and electricity, bursary payments, payments made to ex-employees and payment to other departments.

e-Invoicing plays an important role in ensuring that suppliers are paid on time. Furthermore, it also ensures that the department is able to account for the money spent on goods and services.

During Premier David Makhura’s State of the Province Address (SOPA) in July he reiterated that the e-invoicing system must be used as it will assist in eliminating human intervention where possible irregularities could arise.

I have already tabled follow-up questions to the MEC regarding the compliance rate with the e-invoicing system, to determine exactly why there is not a 100% compliance rate.