DELAYS by government in paying suppliers are leaving many businesses unable to obtain tax clearance certificates (TCCs) from the Eswatini Revenue Service (ERS).
This has affecting their operations and ability to compete for new business.
The issue came under the spotlight during the appearance of the Treasury Department before the Public Accounts Committee (PAC) on the auditor general’s report on unsupported arrears amounting to E3.16 billion recorded under outstanding accounts for all ministries as at March 31, 2025.
Nhlambeni MP Manzi Zwane said suppliers had raised concerns that government delays in settling invoices were making it difficult for them to meet their tax obligations, resulting in challenges when applying for tax clearance certificates.
He said many businesses depend on prompt payment from government to remain compliant with their statutory obligations, warning that delayed payments were placing unnecessary financial pressure on suppliers.
“The AG should inform us on the setbacks that hinder the payment of suppliers because it creates all sorts of challenges in their operations. The country has made amends by sourcing funding through loans but the challenge persists, why?” Zwane submitted.
Responding to the concerns, Accountant General Nomsa Simelane said the suppliers referred to in the audit findings had all been paid by December last year.
She, however, maintained that the Treasury was not the primary cause of the delays.
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Instead, she said the problem often started at line ministries, where payment documents were either submitted late, contained missing information or were not forwarded to Treasury on time.
Simelane said the Treasury had repeatedly engaged ministries on the matter and, in some instances, rejected incomplete payment submissions until the required documentation had been provided.
To improve accountability, she said Treasury introduced a monthly reporting system requiring ministries to indicate which payment documents remained in their possession and which had already been submitted for processing.
She added that Cabinet had also approved a process requiring ministries to submit lists of outstanding arrears together with the financial statements presented to the auditor general.
“We cannot as the Treasury Department go to the line ministries and demand the arrears because that will touch on conflict of interest, so we rely on the ministries,” she said.
According to Simelane, officials are also being trained to submit supplier payment documents promptly, while delays attributable to individual officers are now recorded and reflected during staff performance appraisals.
She said supplier payments were processed almost every week, depending on the availability of funds.
PAC Chairperson Madala Mhlanga questioned why ministries continued to retain payment documents instead of forwarding them to Treasury for processing.
Simelane attributed the delays to negligence, inadequate budget provisions and frequent reallocations of funds within ministries, which often resulted in supplier invoices remaining unpaid for extended periods.
She further said the shortage of procurement officers across government had compounded the problem, as procurement procedures were frequently not followed.
