KwaZulu-Natal Finance MEC Francois Rodgers.
Image: KZN Treasury Facebook
KwaZulu-Natal (KZN) Finance MEC Francois Rodgers addressed the significant delays in payments to suppliers faced by provincial departments, attributing the challenges not to the KZN Treasury but to a systemic transition at the national level.
The announcement comes in response to rising concerns over the financial strain on local suppliers as departments struggle to process payment requests in a timely manner.
In a statement released on Wednesday, Rodgers noted that frustrations have been palpable among various provincial departments, as many have encountered significant hurdles in managing their financial obligations.
"On 1 April 2025, the National Treasury implemented a new version of the Standard Chart of Accounts (SCOA V6), replacing the previous version (SCOA V5), which had been in place since 2017," Rodgers said.
"As part of this process, a complete refresh of the Basic Accounting System (BAS) technical environment was undertaken. This required the development of new databases across all departments."
He explained that the modernisation followed a detailed review conducted during the 2024/25 financial year and that the aim was to improve financial data classification, better align budget structures with reporting needs, and enhance overall system performance.
"National Treasury explained there was extensive preparation ahead but the changeover, however, certain challenges have since been experienced.
He urged Finance Minister Enoch Godongwana and the National Treasury to address the issue, stating “Delayed payments to suppliers of the government are not desirable as they impact many small businesses and households. The National Minister of Finance and National Treasury must give the undertaking that this matter will be resolved sooner rather than late," he added.
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