KZN Supplier Payment Delays Blamed on National System Overhaul, Says MEC Rodgers

KwaZulu-Natal’s Finance MEC, Francois Rodgers, has moved to clarify the source of ongoing supplier payment delays affecting provincial departments, pointing to a national systems overhaul rather than inefficiencies within the KZN Treasury.

In a statement released on Wednesday, Rodgers addressed growing concerns from businesses who say late government payments are putting them under severe financial strain. These delays, he said, are largely the result of a nationwide transition to updated financial systems.

“On 1 April 2025, the National Treasury implemented a new version of the Standard Chart of Accounts (SCOA V6), replacing the previous SCOA V5 used since 2017,” Rodgers explained.

The new system also included a complete refresh of the Basic Accounting System (BAS), requiring the creation of new databases across all government departments. This technical upgrade followed a comprehensive review of financial data structures during the 2024/25 financial year, aiming to modernize reporting frameworks and improve overall efficiency.

However, the rollout has not been without its problems.

“Despite extensive preparation by the National Treasury, challenges have emerged during implementation,” said Rodgers. “Departments are facing delays not because of a lack of will or effort, but due to technical barriers presented by the system upgrade.”

Local suppliers—many of them small businesses—have been particularly hard hit, with delayed payments affecting cash flow, staffing, and operational planning.

Rodgers urged Finance Minister Enoch Godongwana and the National Treasury to act swiftly to resolve the disruptions.

“Delayed payments to suppliers 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 later.”

While the KZN Treasury is working closely with affected departments to manage the transition, Rodgers emphasized that the province’s hands are tied until the national issues are addressed.

{Source: IOL}

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