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Thread: Having the Government as your client

  1. #1
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    Nov 2007
    South Africa
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    Having the Government as your client

    Gauteng will only work with able providers (2009-06-09)

    The Gauteng Provincial Government is expected to demand a high standard of performance from all its service providers.

    This is according to Gauteng Premier, Nomvula Mokonyane who was delivering her maiden State of the Province Address on Tuesday.

    “We are going to be very strict on issues of value for money and demand high standards of performance from anyone who does business with the provincial government. We want to do things differently,” she said.

    She added that the provincial government would direct its energies to spending government money on real service delivery and not on intentions.

    “In line with the need for prudent expenditure, they will focus more on cutting the cost of doing business and prevent any wasteful expenditure,” said Mokonyane.

    The premier also announced that the provincial government would be reviewing its engagement with the service providers such as consultants, developers and several others.

    “We demand better service and nothing less. It is our understanding that we have no permanent marriage with service providers, but a relationship based on performance and mutual trust.

    “Those that only see government as the milking cow and lower their standards when it comes to doing work for government have no place in this new administration,” she said.

    The Premier said for a long time, government has been taken for a ride by greedy service providers who do not care less about the welfare of the people.

    The new provincial government only wants to partner with service providers who understand that their role is to assist in building a lasting legacy through the provision of quality service. - BuaNews

    Do any forumites have the government as a client?
    How you you handle cashflow issues?

    I have several clients trying to obtain funding and no credit provider will touch the deals because of this.
    My Factoring deals are impossible to approve too.
    I cant even get 10% of invoices discounted for clients if they are gov. suppliers

  2. #2
    Site Caretaker Dave A's Avatar
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    Durban, South Africa
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    In fairness I think the departments need to be considered separately rather than simply all government departments being tarred with the same brush.

    I've had no particular problems with an airforce contract - payment gets made at about 30 days. However, I did walk away from a substantial contract with a government funded hospital after a little research (about the same time as Nestle did their stop-supply which had me digging a little deeper than usual).

    You're right about banks wanting nothing to do with financing deals involving government departments at the moment.

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