Members of the Public Accounts Committee (PAC) have called on the Ministry of Finance to clarify persistent claims that government is facing severe cashflow challenges, including allegations that it once had only E29 000 in its account.
The matter was raised when Ministry of Finance officials appeared before the committee yesterday.
Somntongo MP Sandile Nxumalo said government needed to be transparent about its financial position, amid growing concerns over delayed payments and stalled projects.
“We need clarity on whether government has money or not because there are many complaints regarding delayed payments,” said Nxumalo.
He said the individual who made the claim was attempting to illustrate the seriousness of government’s financial situation.
“The country is paying billions in interest because of the debts we have. We need to know the truth about what is happening regarding the release of funds,” he said.
Nxumalo further noted that numerous projects had been affected by delays in the release of funds and questioned whether the ministry was withholding payments because cash was unavailable.
The issue arose after Kubuta MP Masiphula Mamba sought clarity on complaints from suppliers and contractors who claimed they had not been paid.
Mamba asked whether the delays were a result of suppliers failing to submit the necessary documentation.
“There are suppliers who are complaining about not being paid, including contractors. Can you assure us that those who have not been paid failed to submit the required documents?” he asked.
Matsanjeni South MP Sabelo Ndlangamandla also pressed the ministry for timelines regarding payments to suppliers.
“Projects have stalled because suppliers have not been paid. This issue goes beyond Microprojects and affects many other suppliers. When can they expect payment?” he asked.
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Gege MP Magesi Dlamini sought clarity on the funding process for Microprojects, questioning whether the entity was required to request funds or wait for quarterly budget releases.
Responding to the concerns, Principal Secretary Vusi Dlamini said the ministry held weekly cashflow management meetings to assess government’s financial position.
“Some weeks are better than others. The country’s budget is fully financed through revenue and financial projections that support government expenditure,” he said.
Dlamini explained that while funds may be approved and allocated, actual payments depended on the availability of cash.
“By the end of the financial year, every supplier should be paid. However, there are instances where ministries exceed their budget allocations,” he said.
He added that Microprojects had submitted the required documentation and the funds had been approved.
“When it comes to processing payments, we must consider whether government has the cash available at that particular time.
The documentation is already at the auditor general’s office and we are awaiting cash before payments can be processed,” he said.
Ndlangamandla welcomed the clarification that government did not have only E29 000 in its account but reiterated concerns about delayed supplier payments.
“The E29 000 example was raised because suppliers have not been paid. These suppliers play a critical role in supporting the economy,” he said.
