Subcontractors should be paid in 30 days

ACDP LOBBIES CITY TO ENSURE SUBCONTRACTORS ARE PAID IN 30 DAYS

By law, all Government departments must pay their contractors within 30 days of invoice date. The ACDP in Cape Town has now lobbied the City of Cape Town to approach National Treasury to issue a Treasury requiring that all government contractors, so paid within 30 days, must pay their subcontractors within 30 days too.

“I am very pleased that the City’s Finance Directorate has agreed to the ACDP’s request,” says Councillor Grant Haskin, ACDP caucus leader in the City of Cape Town. “Many subcontractors are SMME’s. Emerging micro enterprises. Entrepreneurs. Small businesses with excellent ideas, products and service.  But too many get burned when they subcontract to contractors who are doing business with government.  Too often, even though the contractor is paid within 30 days by government, they then make their subcontractors wait 30, 60, 90 days, sometimes even longer for payment. This is unacceptable and unfair on these SMME’s.  Making them wait this long for payment plays havoc with their cash flow – the life blood of any SMME, causing many to close.

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