Chair, hon Minister and hon Deputy Minister, the National Development Plan, NDP, accepted by government quite clearly states that citizens have the right to expect government to deliver certain basic services. The NDP calls for radically improved government performance by getting the basics right, implementing government programmes, finding innovative solutions to complex challenges and importantly, Mr Minister, holding people accountable for their actions. To achieve these goals, all government structures and the leaders and managers in all three spheres of government need to be monitored and evaluated on a regular basis to ensure compliance.
Although the NDP therefore welcomes the establishment of the Department of Performance Monitoring and Evaluation and sees the establishment of the department as a positive step in tightening the accountability chain, it calls for the performance agreements signed by management to be made public. Reports by the department should also be made available to the Standing Committee on Appropriations and not only to Cabinet, because we know that whenever anything controversial goes to Cabinet, it disappears, because it becomes a national key point! [Laughter.]
The Department of Performance Monitoring and Evaluation has produced some good reports, and in this regard I especially wish to mention their report on payment to suppliers by government within 30 days. This report found, inter alia, that during 2012, 38 national government departments were responsible for late payments to suppliers equalling R3,7 billion! A total of R208,7 million in late payments was recorded in December 2012 alone. The worst offenders with late payments in 2012 were the Department of Justice and Constitutional Development and the Department of Public Works, with late payments to the value of R1,9 billion and R536 million respectively. Other poor performers included the Departments of Defence and Military Veterans, of Police, and of Correctional Services.
Unfortunately, provinces are equally bad payers. Limpopo, North West and Gauteng consistently reported high monthly numbers of unpaid invoices. In the case of Limpopo, for instance, the average monthly value of invoices older than 30 days but not yet paid exceeded R250 million. In the DA- governed Western Cape, provincial departments managed to pay 92% of supplier invoices within the prescribed 30 days. No figures are included in respect of municipalities and parastatals, so the figures for nonpayment within 30 days by all government entities will be much worse than what the Department of Performance Monitoring and Evaluation report currently indicates.
Delay in payments by government departments puts enormous financial strain on small businesses in particular, and leads to the demise and closure of businesses in direct contradiction to the prescripts of the National Development Plan. Payments within 30 days will assist in the formation and continued sustainability of small businesses, and in the creation of the thousands of jobs so desperately needed to eliminate poverty and attain equality.
In the report on this matter, the Department of Performance Monitoring and Evaluation comes to the conclusion that most of the problems experienced relate to weaknesses in internal administration. Some departments advance the same reasons every month for noncompliance with payment within 30 days, but these departments make little or no progress in addressing the underlying problems! Some cases have even come to the attention of the department where certain officials have allegedly deliberately held invoices for payment back until a bribe has been paid to expedite payment! Payment of suppliers within 30 days is a requirement in terms of section 38(f) of the Public Finance Management Act and Treasury Regulations, which stipulate quite clearly that accounts are to be settled within 30 days and that noncompliance with this requirement constitutes financial misconduct in terms of section 81 of the PFMA.
Unfortunately, Mr Minister, we have not seen any action taken against accounting officers and/or heads of departments transgressing this requirement. The Public Service Act places the responsibility on a head of department to ensure that disciplinary action is taken where warranted, and it further stipulates that the executive authority should take action against a head of department where he or she has failed to take the necessary action. What has happened? Nothing has happened to date!
When then, can we ask, are we likely to see an improvement in the situation? The answer unfortunately is never, if the executive fails to take the necessary action and if we continue with the appointment of incapable but politically well-connected officials. This serious state of affairs makes the introduction of the proposed Results Bill, which would give the Department of Performance Monitoring and Evaluation teeth, hon Snell, to take action over all three spheres of government themselves, an absolute necessity.
Finally, hon Mafolo has referred to the question of attendance at meetings. May I suggest to her that she tries to get the ANC people to attend their meetings on a more regular basis so that we can have a quorum at all meetings. Thank you.