Gauteng finance MEC Lebogang Maile has laid out a roadmap to modernise public financial management, digitise supply chain operations, and strengthen fiscal discipline across the province’s municipalities.
This as he delivered the revised budget at the Gauteng provincial legislature on Tuesday morning.
Among other things, the address emphasised technology-driven reform, accountability, and inclusive economic transformation.
Maile announced the official rollout of the new invoice management system (IMS), which he said went live on April 1, describing it as a cutting-edge platform that is of advanced technology.
Payment of invoices
This system has replaced the electronic invoicing system to streamline and digitise invoice processing.
“In the 2024/2025 financial year, we successfully paid 192 718 invoices to the value of R48.9-billion,” said Maile.
“Our electronic invoice system, which enabled the electronic processing of all invoices received in the province, facilitated these payments.”
He said the IMS has already processed close to 20 000 invoices and boasts close to 4 000 active service provider users daily.
This system is designed to reduce delays, enhance accuracy, and provide real-time visibility, he said, confirming progress on the establishment of an invoice ombudsman.
“We are pleased to communicate that we have completed the terms of reference for the invoice ombudsman, and we will be taking them to the executive council in due course.”
Support for municipalities
In his address, Maile raised concerns about the financial sustainability of many municipalities, saying that only the City of Johannesburg, City of Tshwane, Midvaal municipality, and Mogale City local municipality have tabled funded budgets for the 2025/26 financial year.
“The remaining municipalities tabled unfunded budgets, which is a serious concern. Fiscal discipline requires that municipalities maintain fiscal positions that are consistent with macro-economic stability and sustained economic growth,” he said.
The provincial treasury, he said, is supporting these municipalities by conducting budget assessments and helping refine their funding strategies.
One major initiative involves guiding municipalities through cost-reflective tariff assessments, which have revealed a stark gap between the actual cost of services and current tariff levels.
Due to this, municipalities are implementing a phased approach to tariff increases.
“These challenges are magnified by the substantial distribution losses in water and electricity, which significantly impact financial sustainability,” said Maile.
Sanitation, electricity get lion’s share
The total draft capital budgets for the 2025/2026 fiscal year amount to R14.3-billion.
According to Maile, sanitation and electricity projects will receive the largest share, aligning with Gauteng premier Panyaza Lesufi’s 13-priority challenge framework announced in the state of the province address earlier in the year.
To deal with water losses, Maile highlighted a strategy involving infrastructure upgrades, smart water management, community engagement, and financial ring-fencing.
The province is also exploring the use of special purpose vehicles to support municipal infrastructure development.
Reiterating the role of supply chain management, Maile emphasised the need for “fair, equitable, transparent, competitive, and cost-effective” procurement processes.
He also mentioned that findings from a recent capacity assessment revealed under-capacitation in contract and project management and an imbalance between compliance and the transformative goals of supply chain management.
New recruitment strategy
Consequently, said Maile, the province is developing a new personnel recruitment and placement strategy to address these weaknesses.
Maile disclosed that the provincial supply chain management system commits over R90-billion annually, describing it as a tool for economic transformation.
To modernise procurement, the province is partnering with the Gautrain Management Agency to pilot an advanced procurement system in five institutions, starting in July.
Training for personnel will begin this month.
“Our primary objective is to ensure that provincial departments and entities in Gauteng receive all their tenders electronically and that the evaluation of said tenders is conducted through advanced technological means,” Maile said.
He emphasised that the ultimate aim is to transform payment timelines, ensuring 30 days for all commitments; 15 days for SMMEs in general; and 10 days for township suppliers.
