National Treasury Reports R15.5 Billion in Unpaid Government Invoices

Posted 01 July 2026 Written by Acts Online
Category Public Finance

Brought to you by SAnews: The Public Service Commission (PSC) has highlighted ongoing compliance failures under the Public Finance Management Act, No. 1 of 1999 (PFMA), as national and provincial government departments continue to fail to pay supplier invoices within the mandatory 30-day period.

According to the National Treasury’s 2025/26 third-quarter report on Non-Compliance with Payments of Suppliers’ Invoices within 30 Days, there were 90,856 invoices older than 30 days that remained unpaid at the end of the quarter. These outstanding invoices represent a total rand value of R15.5 billion. This reflects a 25% regression in value compared to the second quarter of the 2025/26 financial year, which recorded 95,399 unpaid invoices valued at R12.4 billion.

Provincial departments remain the primary contributors to these delays, accounting for 98% of the invoices older than 30 days and 98% of the total R15.5 billion outstanding. Additionally, national and provincial departments paid 89,499 invoices late (after the 30-day threshold) during the third quarter, totaling R10.8 billion.

Key Offending Departments

The National Treasury report identified several national departments with high rates of non-compliance during the third quarter of the 2025/26 financial year:

  • Department of Home Affairs;
  • Department of Land Reform and Rural Development;
  • Department of Water and Sanitation (Trading Account);
  • Department of Public Works and Infrastructure (Trading Account);
  • Department of Forestry, Fisheries and the Environment; and
  • Department of Justice and Constitutional Development.

In terms of specific departmental performance during the preceding quarter, the Department of Defence recorded the highest volume of late payments, paying 15,769 invoices (80% of its total) after 30 days, amounting to R450 million. The Department of Public Works and Infrastructure followed with 1,391 invoices (7% of its total) paid late, valued at R216 million.

PSC Commissioner Anele Gxoyiya attributed the persistent delays to structural weaknesses within supply chain management operations. These include a lack of consequence management, weak oversight of junior supply chain staff, manual processing dependencies, delays in invoice verification, and fragmented interdepartmental communication.

What this means for you, your business, or your clients

  • For yourself: No direct individual compliance obligations; however, professional advisors must maintain awareness of public sector payment risks when advising on cash flow management.
  • For your business: Firms contracting directly with public sector entities must factor in significant payment delays, particularly when dealing with provincial departments or high-risk national departments, and adjust working capital reserves accordingly.
  • For your clients: Advise SMME clients supplying goods or services to government departments to implement robust credit control policies, secure alternative bridging finance, and utilize Treasury’s reporting channels to escalate unpaid invoices exceeding 30 days.

Originally published at https://www.sanews.gov.za/south-africa/non-payment-invoices-within-30-days-persists-government

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