Eastern Cape Black Business Forum secretary Luthando Bara described the non-payment as the ‘primary assassination’ of small businesses.
Mvoko revealed that these were outstanding payments in excess of 30 days owed by Eastern Cape government departments to suppliers for goods and services rendered, as at the end of February this year.The biggest defaulters are the department of health, owing in excess of R2.1bn to its suppliers that submitted 17,470 out of 18,174 invoices.
“This means that as at the end of February 2020, the department no longer had any funds left in their budget to pay suppliers. This is simply unacceptable,” he said. On behalf of the BBF, Bara said: “The government has been choking businesses to death even before Covid-19. Politicians are paying lip service to it and pretending to care.”
The Eastern Cape finance and economic development MEC’s spokesperson Mzukisi Solani said: “The executive committee of the province had mandated provincial treasury to form war-rooms to address both the departments of health and education on supplier payments. In this regard, additional to other interventions, engagements were held in the last financial year with both departments.
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