Seen Here: Gauteng MEC for Finance and Economic Development, Nkululeko Dunga, addresses service providers during the Provincial Treasury’s Service Providers Imbizo. The MEC acknowledged the severe impact of delayed government payments on businesses and communities, while committing to stronger accountability, improved payment systems and practical interventions to restore trust and support economic growth across Gauteng. Photo Credit: Supplied
JOHANNESBURG – Gauteng MEC for Finance and Economic Development, Nkululeko Dunga, has acknowledged the devastating impact that delayed government payments continue to have on businesses, admitting that the province’s R7.5 billion in unpaid accruals and payables represents not only a fiscal challenge but a serious threat to economic growth, service delivery and job creation.
Speaking during Gauteng Provincial Treasury’s inaugural Service Providers Imbizo, Dunga described the gathering as a necessary but uncomfortable intervention, saying government should never have reached a point where suppliers needed to gather to seek answers about unpaid invoices.
“Payment for goods and services rendered should be routine and timeous. That it has become necessary to account to you in this manner should embarrass all of us who carry public office,” Dunga told service providers.
R7.5 billion still outstanding
The MEC revealed that, as of 31 May 2026, Gauteng Provincial Government’s accruals and payables stood at R7.5 billion.
The amount includes goods received but not yet invoiced, invoices that have not yet been received, and transactions still being processed.
Of the total:
- R4.2 billion remains within the prescribed 30-day payment period.
- R3.3 billion, representing 44%, is already overdue beyond the legally required 30 days.
Although the figure remains alarmingly high, Dunga said it reflects gradual improvement compared with previous years.
The province’s unpaid obligations declined from R12.6 billion in March 2025 to R9.4 billion in March 2026, before improving further to R7.5 billion by the end of May.
“We share these figures not to congratulate ourselves, but to acknowledge that while progress is being made, it is far too slow for businesses to feel the difference,” he said.
Health Department remains the biggest concern
The Gauteng Department of Health continues to account for the largest share of unpaid invoices.
According to the Provincial Treasury:
- The department owes approximately R3.6 billion, nearly half of the province’s total outstanding debt.
- The Gauteng Department of Education follows with R1.4 billion.
Treasury said the Health Department remains the province’s single biggest contributor to payment delays due to budget over-commitments and severe cash-flow constraints.
When accruals are included in payment performance calculations, the department’s compliance with the legislated 30-day payment requirement falls to below one percent.
Even more concerning is the age of many outstanding invoices.
The Department of Health is responsible for:
- 97% of all invoices older than 30 days.
- 87% of the total value of overdue invoices.
- More than 8,158 invoices, valued at just over R2 billion, that have remained unpaid for more than 120 days.
Dunga said these figures clearly identify where urgent intervention is required.
Administrative failures worsening delays
Beyond financial pressures, Treasury also identified weaknesses in procurement and financial management processes as major contributors to delayed payments.
Its analysis found that 14 provincial departments and three public entities had been issuing purchase orders only after invoices had already been submitted—sometimes months later.
Such administrative failures create unnecessary payment delays even where budgets are available.
“This is entirely within our control to fix,” Dunga said.
Government has already introduced measures including automated reconciliation systems and tighter budget controls to strengthen financial discipline and improve payment turnaround times.
Small businesses bearing the brunt
Dunga acknowledged that delayed payments have devastating consequences, particularly for small and medium enterprises (SMMEs), township businesses and black-owned companies that often operate with limited financial reserves.
Delayed payments leave businesses unable to pay employees, suppliers and creditors, forcing many to rely on expensive short-term borrowing simply to survive. Others are forced to retrench workers or close their doors permanently.
“When a large corporate is paid late, it is an inconvenience. When a township-based small business is paid late, it can be the difference between survival and closure,” Dunga said.
He warned that government’s failure to honour its payment obligations ultimately discourages businesses from bidding for public contracts, increases procurement costs and undermines service delivery across the province.
Service delivery also suffers
Treasury warned that delayed supplier payments affect far more than business cash flow.
Late payments disrupt infrastructure projects, maintenance programmes, healthcare services and the procurement of essential goods, directly impacting residents who depend on public services.
“When government fails to pay on time, the consequences ripple throughout the entire economy,” Dunga said.
Treasury seeks collaborative solutions
The Service Providers Imbizo brought together representatives from the South African Revenue Service (SARS), the Companies and Intellectual Property Commission (CIPC), the National Home Builders Registration Council (NHBRC) and Standard Bank, all participating in discussions aimed at identifying practical solutions to improve payment systems.
Although the Departments of Health, Education, Human Settlements and Infrastructure Development had been invited, they were unable to attend.
Dunga expressed optimism that future engagements would include all major spending departments responsible for the majority of unpaid invoices.
A commitment to accountability
Closing his address, MEC Nkululeko Dunga assured service providers that Gauteng Provincial Treasury is committed to replacing promises with measurable action and greater accountability.
He encouraged businesses to openly share their experiences and recommendations so that government can implement practical reforms that restore confidence between the state and the companies that support public service delivery.
“We are not here to defend the indefensible,” Dunga concluded.
“We are here to understand the full impact of these failures so that our commitments are practical, measurable and accountable. That is the only commitment worth making.”
The Service Providers Imbizo forms part of Gauteng Provincial Treasury’s broader strategy to strengthen financial governance, improve compliance with the 30-day payment requirement and rebuild trust with service providers whose work is critical to delivering essential public services across Gauteng.
