PSC warns unpaid state invoices crippling small businesses, deepening governance crisis

By Thapelo Molefe

The Public Service Commission (PSC) has sounded the alarm over a deepening crisis of unpaid government invoices, warning that persistent non-compliance with payment regulations is crippling small businesses and undermining economic recovery.

Releasing its combined third and fourth quarter bulletin on Wednesday, the commission said tens of billions of rand owed to service providers remain unpaid beyond the legally mandated 30-day period.

PSC Commissioner Anele Gxoyiya said there has been “no overall improvement” in departments settling invoices on time, despite legal obligations under the Public Finance Management Act (PFMA).

According to National Treasury data cited by the commission, 95,399 invoices worth R12.4 billion were unpaid beyond 30 days in the second quarter of the 2025/26 financial year — a 17% increase from the previous quarter.

“This entrenched non-compliance underscores the urgent need to enforce payment discipline through consequence management,” Gxoyiya said.

Provincial departments were identified as the