Government promises to pay ‘billions’ owed to service providers

[Nat Quinn]

Government promises to pay ‘billions’ owed to service providers

The Department of Public Works and Infrastructure (DPWI) promises to put an end to its failure to pay service providers in the construction industry on time – laying the blame for the delays on alleged bribery and corruption.

This came at the National Stakeholder Forum (NSF), convened by the Construction Industry Development Board (CIDB), an entity of the DPWI.

The NSF includes contractors, government departments, municipalities, industry organizations, councils, universities, and other players in the built environment industry.

At the top of the agenda were concerns from service providers of late/no payment from the department for contracts.

“We are alarmed at the allegations that outstanding invoices amount[ing] to billions,” said Public Works and Infrastructure minister Sihle Zikalala. “We will commence engagements with all contractors not paid on time,” he added.

The minister promised that his department would fight “bribery and corruption” that is causing payments to be delayed (withheld) by individuals allegedly trying to force providers to give them a pay-off to release payment.

The DPWI plans to revive the Re a Patala (We Pay) campaign across provinces. This campaign was launched back in 2009 to address payment backlogs to service providers.

Stakeholders at the NSF also urged the minister to investigate and report on the escalating rate of the cancellation of tenders, especially big tenders by state-owned companies and institutions, which is “costing the construction industry billions of rands.”

DPWI also pledged to assist small, micro and medium enterprises (SMMEs) and emerging contractors who face challenges to financing. The CIBD and Small Enterprise Financing Agency (Sefa) have committed to contributing a total of R300 million in assistance.

 

SOURCE:Government promises to pay ‘billions’ owed to service providers – BusinessTech

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