R22 Billion in Late or Unpaid Government Invoices
Another quarter, another cash flow crisis—this time with a whopping R22 billion in government invoices either paid late or not at all. The National Treasury’s latest report (Q3 2024/25) reveals that national and provincial departments are still struggling—or failing—to meet their legal obligation to pay suppliers within 30 days.
And for accountants? That means red flags everywhere: from client solvency risks to delayed VAT claims and audit headaches. Let’s break it down.
The Big Picture: What the Numbers Say
This isn’t just a minor admin glitch. We’re talking about over 212,000 invoices affected in just three months—either paid late or not paid at all. That’s a serious dent in supplier cash flow, especially for small businesses that rely on timely payments to stay afloat.
Here’s the damage:
R9.5 billion in invoices paid after the 30-day mark
R12.9 billion still unpaid as of December 2024
Provincial departments are the worst culprits: responsible for 95% of all unpaid invoices
National departments are catching up—in the worst way—with unpaid invoices jumping 134% from the previous quarter.
Who’s Dropping the Ball?
The report names and shames the biggest contributors. If your clients supply these departments or provinces, it might be time to tighten those payment terms—or at least keep a close eye on the receivables ledger.
Top national offenders:
Department of Defence (responsible for a staggering 80% of late payments by national departments)
Public Works and Infrastructure
Water and Sanitation
Correctional Services
Justice Justice and Constitutional Development and
Police.
Provincial laggards:
Eastern Cape – 43% of all unpaid provincial invoices, worth R4 billion
KZN and Gauteng aren’t far behind, each sitting on billions in unpaid bills.
What’s The Reason This Time?
You guessed it—more of the usual:
Budget constraints and cash blocking
IT and system failures (BAS and LOGIS)
Disputes with suppliers
Internal control gaps and poor admin
Misplaced invoices (!)
Slow approvals and understaffed finance units
It’s not pretty—and definitely not efficient.
Why This Should Matter to You
If your clients are government suppliers, these delays aren’t just inconvenient—they’re potentially catastrophic. Here’s why:
Cash flow problems can push small suppliers into debt—or worse, out of business
Delayed VAT refunds mean liquidity squeezes
Poor financial reporting due to uncertainty around income timing
Audit risks if receivables start to ‘rot’ on the balance sheet.
How You Can Help
Now more than ever, clients need your guidance—not just to keep their books clean, but to stay afloat. Here’s how you can help:
Keep tabs on outstanding invoices and aging reports
Encourage clients to follow up regularly—and escalate through Treasury’s official channel (📧 30daysqueries@treasury.gov.za)
Help clients draft watertight contracts that include penalties for late payment
Improve document control and support clients in resolving invoice disputes.
