PRESENTATION TO THE2012 AFRICA SMME CONFERENCE

27 SEPTEMBER 2012STELLENBOSCH

By: Kaybee MotlhoioaExecutive Manager:Corporate Serives

THE PUBLIC SECTOR SMME PAYMENT ASSISTANCE HOTLINE

SUCCESSES, CHALLENGES AND OPPORTUNITIES

Introduction

Government mandate to the dti – 2007

The dti- Seda – Hotline Service provider

Establishment of the database – January/February 2009

760 Government Departments, Public Institutions at National, Provincial and local levels including all municipalities

Launch of the Hotline – 21 September 2009

68% registration on database

BACKGROUND

HOTLINE PROCESS FLOW

HOTLINE STATISTICS AS AT 14 SEPTEMBER 2012

PUBLIC SECTOR SMME PAYMENT ASSISTANCE HOTLINE STATISTICS

  1 April 2009 – 31 December 2011 Total

1 January 2012 – 13 September 2012 Total

Total To Date

Calls Received 25 134 1 372 26 506

Non-payment incidents logged 6 964 2 028 8 992

Non-payment incidents closed 4 485 1 332 5 817

Value of Payments Facilitated R271 084 871 R52 139 855 R 323 224 726

Value of Payments Outstanding R257 237 783 R19 398 437 R221 142 021

CHALLENGES

Challenges faced by SMME Service Providers (SPs)

•SPs not informed of requirements for payment

•SPs not issued with a PO

•SPs appointed verbally (fear of reprisals if not done)

•Requests for additional services/products without proper amendments or variation orders

•Invoices forwarded to wrong divisions within the Department or Public institution

•Invoices lost or misplaced

•Requests to SPs submitted by e-mail or letter but not followed up by a formal PO

•Preferential payment of invoices because of contacts within

•“Mr Signature” refusing to authorise payment

CHALLENGES

Challenges faced by Government Entities

•Quality of work/goods from SPs

•Unfinished work by SPs

•SP continuing with service even after the lapse of the contract period

•Failure to submit original tax clearance certificates

•Failure to inform departments of change in company name or banking details

•Lack of continuity when Government officials are moved from original positions

•Late submission of invoices – date of delivery vs invoice date

•SPs claiming VAT even tough they are not VAT registered

•SPs providing service/products without an official PO

•SPs asking officials within to cut corners to expedite their payment

•Piling of invoices by officials to process them in a batch

CHALLENGES

Challenges faced by the Hotline

•Subcontractors unable to log calls

•SPs not knowing the unit or division they rendered services to

•SP unable to provide PO or invoice numbers

•Lumping of more than one invoice into a single payment request

•Expectation from SPs to be paid by the Hotline

•SPs lodging calls against Schedule 2 entities which have been excluded from the Hotline

•Inability by SPs to provide the full banking details

•Turnaround time for calls which have been escalated – SP expectation vs real

turnaround time

HOTLINE

What the Hotline is not..

•Watchdog

•Mediator

•Enforcer

What the Hotline is..

•Facilitator

•Evaluator

•Educator

CONTACT DETAILS

Contact Details for the Hotline

Toll Free No. 08607663729

Fax No. 012 452 1458

Website www.acall.co.za

E-mail smme@acall.co.za

THANK YOU