Gauteng Department of Infrastructure Development
The inability of the Gauteng Department of Infrastructure Development (GDID) to pay contractors within 30 days as required by the Public Finance Management Act (PFMA) has dealt a major blow to contractors and service delivery across the province.
DID’s Portfolio Committee evaluated the impact of late payment in response to concerns raised by the Auditor General as well as complaints from contractors who run small businesses. Contractors indicated that the late payments impacted on their businesses to the extent that some of them have been forced to abandon the projects because of cash flow problems.
This also sets projects back and residents of Gauteng are prejudiced by delayed services.
The affected contractors also indicated that it was not only late payments that put their businesses at risk, but also the fact that DID officials poor project management capability stretched out projects further than cash flow allowed. In addition, some contractors indicated that in a few cases, bribes were sought by officials in order to pay invoices within the required 30 days.
Newly appointed MEC for DID, Jacob Mamabolo, apologised to the contractors for late payments and undertook to investigate and resolve the problems as soon as possible.
The MEC also indicated that DID was creating an anti-corruption unit within the department to deal with the allegation of bribes.
Livelihoods at Risk by Government
While contractors appreciated the sentiment expressed by the MEC, they remain concerned that their livelihoods are being put at risk by government. The main contributing factor for this situation is the fact that officials in the employ of government either do not have the correct skills or the correct attitude in order to ensure efficient management.
One unfortunately cannot eat ‘apologies’. The DA will continue to hold DID to account in order to ensure that they pay contractors on time.
DA Gauteng Shadow MEC for Infrastructure Development
060 558 8313