Circular No. 02 of 2019/20 - Use of Travel Lodge Card for Payment of Travel Related Expenditure
Intelligence Summary
National Treasury's Circular 02 of 2019/20 mandates the use of Travel Lodge Cards as the standard payment instrument for government travel and accommodation expenditure. This centralises travel procurement payments and requires suppliers to be accredited on the lodge card system. The circular aims to improve expenditure control and reduce irregular spending on travel.
Why This Matters for Procurement
Travel and accommodation suppliers must be registered on the lodge card platform to service government clients; non-compliant departments risk audit findings for irregular expenditure.
Key Points
- National Treasury issued guidance standardising the use of Travel Lodge Cards for government travel expenditure payments
- Departments must use the designated lodge card system for accommodation and travel bookings rather than alternative payment methods
- Suppliers providing travel and accommodation services to government need to be registered on the lodge card platform to receive payment
- Non-compliance may result in irregular expenditure findings during audits
Industry Impact
Government departments must now use Travel Lodge Cards for all travel-related payments, replacing ad-hoc payment methods.
Industry-Wide Effect
Standardises payment processes across all spheres of government, reducing fragmentation in travel procurement and creating a single compliance checkpoint for the hospitality and travel services sector.
Affected Sectors
Affected Provinces
Affected Organs of State
Supplier Opportunity Signal
Travel service providers should ensure they are accredited on the government lodge card system to remain eligible for departmental bookings. Monitor tenders for travel management services that reference lodge card compliance.
Risk / Compliance Signal
Departments using alternative payment methods for travel may incur irregular expenditure. Suppliers not on the platform face payment rejection.
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