The Government Printing Works (GPW) which prints identity documents and passports could collapse if state departments failed to pay about R150-million that it is owed, the News24 website reported on Monday.
It said GPW chief executive Tom Moyane warned of the possibility of closure, citing ageing printing machinery which would require millions to replace.
Moyane, who was appointed to the position in April, told City Press that some departments were disputing the amounts owed by them.
Moyane said new machinery required to replace rusting printers could cost up to R80-million. The printing factory also needed to relocate from the current premises, formerly a prison, at a cost of R170-million.
He said although some departments claimed ignorance of the money owed to the GPW, in some instances GPW was to blame for failing to produce sufficient proof of the debt.
”We have asked Parliament to assist to ensure that government departments pay back. There are serious consequences if they don’t pay. You won’t have an ID and a passport,” he said.
”We have a crisis, but at this stage it is manageable and we are in the process of winning the battle, but we need every cent back to pay our employees better, to get a better facility.”
Although some departments were having their documents printed in the private sector, printing of IDs, passports and other security-related documents would not be commissioned to the private sector.
The GPW operates as a state company that generates its own funds. Politically, it reports to the ministry of home affairs.
All provinces owed the GPW amounts ranging from the Eastern Cape’s highest figure of R27-million, to R1,7-million owed by the Western Cape.
Statutory bodies that also owe the GPW hundreds and thousands of rands include the South African Revenue Service, Statistics SA, the Auditor-General and Parliament. – Sapa