Department not paying: contractors

Contractors are demanding the Department of Public Works in KwaZulu-Natal settles long outstanding bills they say total more than R25 million for services rendered. About 100 contractors marched, under the banner of the Interim Public Works Contractor’s Forum (IPWCF), to the department’s Durban regional office last week. They handed over a memorandum of grievances to the department’s acting deputy director-general, Nkosi Vilakazi, demanding that their grievances be addressed by Monday. Vilakazi could not be reached for comment. Among the grievances are claims of corruption, delays in payment, lack of support for contractors and poor management by the department.

The contractors also claimed that a department official, whose name is known to the Daily News, would solicit bribes from losing bidders to have their contracts reconsidered. A contractor, who asked for anonymity, said they had raised the issue with Public Works Minister Thulas Nxesi as far back as 2013. “After his visit in the same year we thought we would see a change for the better. These delays are killing us as small business people. Nothing is communicated to us. He claimed the department owed him about R250 000.” IPWCF’s spokesman, Skhanyiso Dlamini, said that after Nxesi’s visit things “ran smoothly” for a few months but later became worse. “This needs urgent attention because people’s lives are affected. Whenever we complain about the situation, we are told that the department is short staffed. This can hardly be a justification to hold people’s money.”

The government has a policy that requires service providers to be paid within 30 days. Small Business Minister Lindiwe Zulu said she would be sending a task team to Durban to investigate. “Non-payment of contractors is inhibiting the progress in the promotion of small businesses. Once the team is done with the investigation, we need to come up with mechanisms that will make government departments think twice before defaulting in paying contractors,” Zulu said. She said problems with payments to small businesses were common at the provincial, but not national government level. “The 30-day payment policy was put in place to ensure that small businesses get their money on time.”

Thami Mchunu, Public Works’ director of media and stakeholder relations, said the department was aware of the problem. However, Mchunu said the contractors were owed only about R15m. “The value of the orders that are currently in process is about R15m. This is because some contractors owe us certain documentation necessary for the approval or processing of their payment,” he said. He said they were aware of allegations of corruption, but the contractors had not provided them with evidence. Service providers are drawn from the Contractor Industry Development Board database as and when they are needed. This database grows all the time. The contractors perform various work for the department, from fixing burst pipes in public buildings to electrical problems, maintenance and refurbishment of buildings.

The value of the work per contract usually ranges between a few hundred rand up to R500 000. Where the contract is above R500 000, a minimum of three quotes would be requested from contractors, Mchunu said. “Once all the outstanding documentation has been submitted (by) those who need to, and invoices submitted, claims will be paid within 30 days,” he promised.