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New app will fast-track payments to state suppliers

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Mlungisi Mvoko. Picture: Daily Sun
Mlungisi Mvoko. Picture: Daily Sun

The Eastern Cape provincial treasury has developed a web-based online invoice enquiry application to expedite the payment of service providers.

In an interview this week, finance and economic development MEC Mlungisi Mvoko told City Press that they decided to introduce the system to deal with non-payment within the stipulated time of 30 days.

The system is known as HIBPEC, which stands for Have I been Paid Eastern Cape, and will go live on October 10. It is said to be piloted at the department of health before being rolled out to other departments.

“We decided to come up with a system that would monitor invoices as soon as someone has been given an order, so that we can see who is failing to pay. The customer or company can also monitor progress as soon as the invoice is submitted.

“The purpose is to deal with these nonpayments within 30 days, especially for the small and emerging enterprises, because some of them go under because they are not paid by government,” he said.

Once the site goes live anyone with intrest in it will be able to access it. 

Meanwhile, small, medium and micro enterprises (SMMEs) in the province are feeling the pinch due to nonpayment.

President of the Black Business Forum (BBF) Luthando Bara said that, in the Eastern Cape, the total value of invoices older than 30 days was R2.1 billion.

“Black suppliers are the hardest hit and something needs to be done. We are calling on government to address this issue because jobs are being lost. Companies are taking great strain and we need to do something,” said Bara.

Vukile Pokwana, BBF spokesperson and executive member, said R2.1 billion was a lot at a time when there was talk of economic growth, SMMEs were in distress and unemployment was rife.

“That is a shame. It is something that must be dealt with speedily … these unpaid invoices go beyond black SMMEs; it cuts across everyone in every industry.

“We would be engaging with government ... to ensure that this is dealt with,” Pokwana said.

Pokwana was responding to the provincial Treasury developing the app to fast-track the payment of invoices on time, saying that could not be used as an excuse.

“We want invoices to be paid on time, that’s all. There is nothing that stops it. At the end, humans must participate in that app in terms of loading information and ensuring that people are paid.

“They have got the mechanism. What we need is political will to make sure that those invoices are paid, because a lot of SMMEs are in distress. It does not mean that by introducing that app all of a sudden things are going to change,” Pokwana said.

MEC Mvoko said: “I am not sure about the figure; if it is correct. But the reality of the matter is that there is huge nonpayment and I think that we should accept that upfront.

“The premier has said it many times, that departments are not paying businesspeople in good time. This app is meant to address exactly that,” said Mvoko.


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