JOHANNESBURG, Gauteng — Small business owners across the province are grappling with a severe financial crisis as the Gauteng government faces mounting pressure over R7.5 billion in unpaid invoices owed to service providers. The staggering debt, which includes outstanding claims stretching back to 2014, has become the focal point of urgent demands for administrative accountability and immediate financial relief.
The depth of this crisis was laid bare during a recent imbizo for unpaid service providers convened at the Johannesburg City Hall. Entrepreneurs shared devastating accounts of lost homes, deteriorating health, and shattered livelihoods. Frustration has reached a boiling point, with one business owner recounting hostile encounters while seeking answers. The supplier detailed fruitless hours spent visiting provincial offices, only to be threatened by security personnel outside the office of Finance MEC Nkululeko Dunga, and facing similar intimidation, complete with backup security calls, when attempting to engage the Department of Education.
Providing a stark financial breakdown, Gauteng MEC for Finance Nkululeko Dunga confirmed that as of 31 May 2026, the provincial government’s outstanding accruals and payables totaled R7.5 billion. The Department of Health carries the heaviest burden, accounting for R3.6 billion of this amount, followed by the Department of Education at R1.4 billion. Dunga attributed a significant portion of these delays to severe internal control weaknesses, revealing that 14 departments and three public entities were caught issuing manual purchase orders retroactively, after the invoice date. He condemned this lack of discipline in tracking, placing, and reconciling orders as a major catalyst for the payment backlog.
Addressing the aggrieved suppliers, Gauteng Premier Panyaza Lesufi issued a formal apology, categorizing the backlog as a failure of “human behavior” and “human conduct” rather than a lack of funds. Lesufi firmly dispelled rumors of a provincial cash shortage, pointing out that if it were truly a money problem, the government would not routinely return unspent allocations to the national treasury. To eradicate this human element from the procurement process, Lesufi highlighted the upcoming implementation of an “e-tender” system. First detailed in his State of the Province Address, this modernization initiative is designed to eliminate individual influence, ensuring transparent, merit-based contractor selection to secure the best services for the province.
Outlining immediate corrective steps, MEC Dunga committed to the strict ring-fencing of departmental budgets. This measure aims to guarantee that dedicated funds remain available to settle debts for goods and services already delivered. While acknowledging the historic nature of the suppliers’ grievances, Dunga affirmed that the province accepts responsibility for the wrongs committed and is passionate about implementing corrective measures.
The urgency of these interventions is amplified by a recent pulse bulletin from the Public Service Commission, which disclosed that the broader government is sitting on a R15.5 billion pile of unpaid supplier invoices, with provincial health departments responsible for 98% of that figure. The commission explicitly warned that the systemic failure to adhere to the legally mandated 30-day payment window is driving small enterprises to the absolute edge of collapse.