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Audit FailureIrregular Spend
Non-payment of invoices within 30 days persists in government- βNon-payment of invoices within 30 days by government departments violates the Public Finance Management Act (PFMA) and persists as a systemic issue.
- β90,856 invoices (R15.5 billion) remained unpaid after 30 days in Q3 2025/26, a 25% regression from Q2 (95,399 invoices, R12.4 billion).
- βProvincial departments account for 98% of unpaid invoices and 98% of the R15.5 billion in late payments.
- βStructural weaknesses (lack of consequence management, poor monitoring) are cited as root causes, disproportionately affecting SMMEs' cash flow.
- βSMMEs may face liquidity crises, forcing them to borrow, retrench staff, or close businesses due to delayed payments.
- βNational Treasury reports highlight non-compliance, signaling potential audit risks for affected departments.
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