TO: PRINT AND ELECTRONIC MEDIA HOUSES
FROM: KGANKI MATABANE
DATE: 14 May 2019
The Black Business Council (BBC) BBC applauds the Public Protector on ruling enforcing payment to
a 100% black-owned Small, Medium and Micro-sized Enterprise (SMME).
Following an intervention by the Public Protector, Advocate Mkhwebane, a small, 100% black-owned construction company in Mpumalanga is set to receive more than R1.5 million owed to it by the Govan Mbeki Local Municipality for a 2004 road construction contract. The director of the company approached the Public Protector’s office after going back and forth with the municipality over the payment for work done.
“The BBC would like to call all sphere of government including State-Owned Companies and the private sector to pay SMMEs and black suppliers within 30 days to avert a situation where SMMEs suffer financial hardship and are not realising their full potential to contribute to growth and employment ” says Sandile Zungu, President of the BBC.
In terms of the PFMA (as amended), and the Municipal Finance Management Act, Accounting Officers are required to settle all contractual obligations and pay all money owing, including intergovernmental claims, within the prescribed and agreed period. On the 15th March 2005, National Treasury published regulations in terms of the PFMA on payment of invoices. These regulations specified that the prescribed period for the payment of suppliers is 30-days from receipt of a legitimate (undisputed) invoice.
Zungu concluded “the ruling by the Public Protector will go a long way in sending a message to those who continue to prejudice the SMMEs in South Africa that they will be pursued to honour their commitments”.
About the Black Business Council
The Black Business Council (BBC) is the over-arching confederation that represents black professional, business associations and chambers. The primary purpose of the BBC is to lobby government on policy related matters and to play an advocacy role where policies are in place in order to accelerate the participation of black business in the mainstream economy.