KwaZulu-Natal Public Works MEC, Martin Meyer, is cracking the whip on payment delays to contractors — with over R500 million in outstanding debt paid out over the past few weeks alone.
But, its not an easy feat, says Meyer.
“We inherited some long standing payments due to contractors when we took office. Some of those projects involved are being investigated due to some concerns we have,” Meyer told IOL.
“The other challenge is contractors are the implementing agents who have contracts with the department not sub contractors who are also waiting for payments. This creates a further challenge regarding payment processing but we are working through it.”
The crackdown on payments also follows a recent IOL story in which women contractors lashed out at the department for failing to address their concerns.
Many were sub-contractors who are living in fear of loan sharks after they were forced to turn to them to survive. Many had worked on Greys Hospital and Woodlands Primary School in Pietermaritzburg. The main contractors on both those projects left before the work could be completed, citing non payment from the department.
Meyer said his office was engaging with those contractors and circumstances around their payments are also being investigated.
“The issue around Woodlands Primary is an example of a project we inherited which is now under our investigation. I've also set up a Rapid Response Team so that we can address these challenges swiftly without a long, bureaucratic process,” said Meyer.
“We want solutions as quickly as possible. We inherited a department which was bankrupt and have to work with that without compromising our obligations.”
More than R25 million is being demanded by contractors from KZN Department of Public Works for services rendered, while the department itself is trying to claw back money it is being owed.
Amongst this is a legal chase of a contractor who was paid R10 million — and allegedly did not carry out the work.
Other departments are also owing Public Works in the province more than R790 million for work done.
As the custodian for construction projects for all departments, Public Works is tasked to carry out government projects and claim the monies from the relevant department.
The department is also battling — and has vowed to crack down on so-called construction mafia, a group which has held projects to ransome in return for demanding a stake in the work.
Business forums have however, distanced themselves from such action blaming thugs within their midst as saboteurs of projects.
IOL