In Parliament on Wednesday, Minister of Minerals and Energy Lefoko Moagi disclosed that Debswana Diamond Company owes a total of P6 million to 54 companies in overdue payments.
Moagi further revealed that Debswana has an outstanding balance of P252.18 million owed to suppliers, with 42% of them being citizen-owned companies. Of this amount, P79.75 million is due for payment as per agreed terms, with P14.1 million overdue. The remaining balance of P172.4 million is pending but processed and ready for payment.
Explaining Debswana’s payment terms, Moagi stated that they range from 14 to 60 days, depending on the terms of the purchase order. Payments are scheduled on a weekly basis to ensure suppliers are not disadvantaged, with consideration given to any payments due during the week.
However, Moagi acknowledged that 125 suppliers will experience delayed payments due to factors such as late invoice submission, invoice queries, and system challenges. This delay is attributed to malfunctions in the Ariba system following a system upgrade.
Debswana Management is actively addressing these challenges to enhance the supplier experience. The Ministry of Minerals and Energy has received numerous complaints about overdue payments from Debswana. Moagi assured that relevant departments are working diligently to address these concerns and implement necessary measures.
