Government Poor Procurement Performance Hinders Job Creation

Consulting Engineers South Africa (CESA) is appalled at Governments poor performance in relation to the non-payment of suppliers resulting in many companies in the industry going into liquidation and out of business.  Just recently Sanyati Holdings has been forced into provisional liquidation due to Government incompetence in not paying timeously. Graham Pirie, CEO states, “If Government wants to create jobs then this is very poor behaviour”.  Key priorities included in President Zuma’s New Growth Path are job creation and improved service delivery. Non-payment is having a serious impact on SA’s ability to deliver infrastructure.

CESA would like to see stronger measures implemented to ensure that Government adheres to its commitment, which is a legal requirement in terms of the Public Finance Management Act, to pay suppliers within 30 day.  In addition CESA would like to see the legislation regulating Procurement practices being adhered to across all spectrums of Government.

Non-payment is a huge issue for the industry and this is happening on a daily basis at all levels of Government resulting in a large number of companies, large, medium and small being adversely affected.