KZN transport MEC raises alarm over R1.5bn payment delays to service providers

“Admittedly, this transition is not only affecting suppliers but also has the potential to reverse the gains we have made in terms of accelerating the rollout of road construction projects. These delays will have severe implications for service delivery,” Duma warned.

He further acknowledged the breach of the government’s commitment to settle invoices within 30 days, calling it a “serious violation”.

“It is for these reasons that senior management, under the leadership of head of department Siboniso Mbhele spent the greater part of this morning discussing the implications of these delays and the radical intervention,” said Duma.

He said efforts are under way to resolve the issue. The department is working closely with both the National Treasury and the provincial treasury to address the technical challenges within the Basic Accounting System (BAS).

“Our CFO Thabani Nkosi and his dedicated team will continue to engage and update affected service providers. We once again apologise to our trusted contractors and service providers for this situation that is beyond our control,” said Duma.

He reaffirmed the department’s commitment to transparency and accountability. 

“We have an obligation to account for every cent we spend, for every challenge we face, and to reflect on every success we achieve as a result of ongoing support from the people of KwaZulu-Natal,” said Duma. 

The payment delays have triggered a ripple effect across the province’s economy, placing enormous financial strain on small suppliers and contractors.

KwaZulu-Natal finance MEC Francois Rodgers echoed the urgency of the situation, urging national leaders to act swiftly.

“Delayed payments to suppliers of the government are not desirable as they affect many small businesses and households. The minister of finance and the National Treasury must give the undertaking that this matter will be resolved sooner rather than later,” Rodgers said.

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