National Treasury quarterly report · published 1 July 2026

Government is sitting on R15.5bn owed to suppliers

At the end of the third quarter of 2025/26, national and provincial departments had 90 856 invoices older than 30 days still unpaid, worth R15.5 billion. Here is what the 30-day rule actually obliges — and what it does not.

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R15.5bn

Owed past 30 days

Up from R12.4bn the quarter before

90 856

Invoices unpaid

Down from 95 399 — so each one is bigger

98%

Sits with provinces

Of both the count and the rand value

National Treasury report on non-compliance with payment of suppliers within 30 days, Q3 of the 2025/26 financial year.

The numbers moved in opposite directions

It would be easy to read a drop from 95 399 unpaid invoices to 90 856 as progress. It is not. Over the same quarter the rand value went up, from R12.4 billion to R15.5 billion. Fewer invoices, more money — which means the invoices going unpaid are getting larger.

The concentration matters more than the total. Provincial departments carry 98% of the unpaid invoices and 98% of the value. If your work is provincial — provincial public works, roads, health infrastructure, education infrastructure — you are bidding into the part of the state where this risk actually lives. National departments are a rounding error by comparison, though Treasury did name Home Affairs, Land Reform and Rural Development, Water and Sanitation, Public Works and Infrastructure, Forestry, Fisheries and the Environment, and Justice and Constitutional Development among the national offenders.

What it does not mean

The 30-day rule is real law, and it is a duty on the accounting officer — but it is not a payment guarantee and there is no automatic penalty that puts cash in your account on day 31. Departments must file monthly exception reports with their treasury, so the failure gets counted and published. That is accountability, not compensation. Anyone telling you the rule entitles you to automatic interest from the state is selling you something.

What actually starts the clock

Thirty days runs from receipt of a valid invoice. A large share of the invoices contractors believe are overdue never started a clock at all, because something on them let the department park it. Three things do most of the damage:

The order reference

No purchase order or contract number on the invoice, or one that does not match what they issued. This is the single most common reason an invoice sits unprocessed rather than unpaid.

Proof of acceptance

A signed delivery note, completion certificate or stage sign-off. Without evidence the work was received and accepted, the invoice is a claim rather than a payable.

The date of receipt

Day one is the day they received it, not the day you issued it. If you cannot prove the receipt date, you cannot prove day 31 — so send to the registered invoice address and keep the acknowledgement.

The escalation path that exists

Fix the invoice first. Before escalating anything, confirm the order reference, the entity details and the acceptance evidence are all correct. An escalation on an invalid invoice hands them the answer.
Write to the accounting officer. The 30-day duty is theirs personally, not the project manager’s. Name the invoice number, the date of receipt and the amount.
Copy the relevant treasury. Your invoice should be appearing on that department’s monthly exception report. Making sure it does is the pressure that exists.
Price the risk into the next bid. If a buyer has a track record of paying at 90 days, that is a working-capital cost of doing business with them, and it belongs in your rate.

More on protecting cash flow on public work: contractor revenue protection.

Frequently asked questions

How long does an organ of state have to pay my invoice?+

Thirty days from the date it receives a valid invoice. The obligation sits in Treasury Regulation 8.2.3, made under the Public Finance Management Act, and it applies to national and provincial departments. It is a duty on the accounting officer, not a payment term you negotiate.

Is there a penalty if they pay late?+

Not one that pays you automatically. Departments must report late and unpaid invoices to the relevant treasury every month, so the failure is recorded and published — but that is an accountability mechanism, not a compensation mechanism. No interest lands in your account because day 31 passed.

Which departments are worst?+

Provincial departments account for 98% of both the number of invoices older than 30 days and the R15.5 billion owed. Among national departments, Treasury named Home Affairs, Land Reform and Rural Development, Water and Sanitation, Public Works and Infrastructure, Forestry, Fisheries and the Environment, and Justice and Constitutional Development in the Q3 2025/26 report.

What makes an invoice "valid" so the clock starts?+

A valid tax invoice matching the order and the delivery: correct legal entity and VAT number, the purchase order or contract reference the department issued, the correct cost centre, and proof that the goods or services were received and accepted. A missing order number is the most common reason a clock never started at all.

Does Industrial Hub chase payment for me?+

No. Industrial Hub gives you the invoicing and record side — VAT invoices, progress invoicing on multi-stage work, a client portal, and an export for your accountant — so that when you escalate you can show the invoice, the order reference and the date it was received. Chasing the department is still your job.

Invoice so the clock actually starts

Industrial Hub gives you VAT invoicing with your order references, progress invoicing on multi-stage work, a client portal and a clean export for your accountant — alongside live government tenders matched to your trade and province. Try it free for 14 days.

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Source: SAnews, “Non-payment of invoices within 30 days persists in government”, 1 July 2026, reporting National Treasury’s Q3 2025/26 figures.