Late or non-payment for services by government departments and agencies was adversely affecting the sustainability of entrepreneurs and small businesses, Trade and Industry Minister Rob Davies said on Monday.
Launching the small, micro, medium enterprises hotline in Pretoria, Davies said many companies were forced to wait more than 90 days for payment by public entities, despite the Public Finance Management Act requiring that they pay in 30 days.
”We do not know the impact of the crisis on small businesses, but we know it’s profound,” he said.
While access to government procurements was competitive, experience had shown that dealing with the state came hand in hand with late or non-payments.
The reasons for this were wide-ranging, but included contracts not being properly signed and companies not receiving their tax clearance certificates.
Davies said the hotline would quantify and identify the extent of the problem.
He said that of the 760 departments and agencies in the government, 67% had provided the hotline with a dedicated department official to deal with queries.
Although it was not obligatory to support the hotline, ”serial offenders” of non-payments would soon be identified and corrective measures taken.
The hotline would be outsourced to a service provider at a cost of R5-million a year, and would be manned by 15 call centre agents.
The hotline number is 0860 SMMEPAY (0860 766 3729). It will operate from 6am until 6pm on weekdays. — Sapa