The South African Government Printing Works (GPW) will cease printing passports if it does not receive the R126 million it is owed by the Department of Home Affairs, a Democratic Alliance (DA) MP said today.

Juanita Terblanche said the portfolio committee on Home Affairs heard from GPW chief executive Tom Moyane yesterday of how the department of home affairs had "consistently failed" to make payments over an 11 month period.

"During yesterday's portfolio committee meeting on Home Affairs it was revealed that R126 million is owed by the department of home affairs to the Government Printing Works on outstanding payments dating back to April 2009."

"If no payment is received by the GPW within the next three months, the GPW has made it clear that they will not be able to continue to print passports," Terblanche said. "This is because GPW will not be able to afford to continue to order the polycarbonate paper needed for the documents, or the thread to bind them."

Terblanche said the department's turnaround strategy was failing to address the "critical issues" and was allowing new issues to cause further damage to its ability to deliver on its mandate.

"Government departments simply cannot operate like this, placing immense financial strain on the service providers who rely on timeous payments to meet their own obligations, including the payment of employees," she said. The department was not available for comment. - Sapa