KZN transport MEC raises alarm over R1.5bn payment delays to service providers
KwaZulu-Natal's MEC for transport and human settlements Siboniso Duma has voiced concerns over payment delays amounting to more than R1.5bn, affecting more than 2,000 construction companies and service providers across the province.
In a media statement, Duma said the delays were the result of technical glitches stemming from the implementation of a new version of the Standard Chart of Accounts (SCOA V6), introduced by the National Treasury on April 1. The system replaces SCOA V5, which had been in use since 2017.
'In particular, we are extremely worried about the delays in the payment of service providers who are rendering services to the department across all corners of the province. To date, there are pending payments for more than 2,000 service providers in our system, totalling more than R1.5bn,' said Duma.
According to Duma, payments have been delayed since January, affecting road and bridge construction firms, public transport service providers and numerous small businesses that rely on government contracts for their livelihoods.
'About R600m is waiting to be cleared this week, and the balance of R700m is to be cleared over the next two weeks,' he said.
The delays are not only affecting cash flow for businesses but are also threatening to stall vital infrastructure projects.
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