Tender delays cost guards their salaries: header over three

2011-10-28 00:00

SECURITY guards contracted to the Ugu District Municipality allege they have not been paid on time.

Guards employed by Newcastle-based company Sukuma Security Company, said their firm had not been paid by the municipality, and they in turn did not get their wages.

The employees, who chose to remain anonymous for fear of victimisation or losing their jobs, said that they have only been paid their September salaries yesterday and are yet to be paid for October.

Acting senior manager for Mayoralty and Communications, Lindani Mzotho said, “All outstanding payments due to this service have been authorised and in the interim the process of payment will take place in due course.”

However the owner of the company, Mr Sibiya said they have not been paid.” Sibiya confirmed that his tender with the municipality had ended in August this year.

“We are operating on a new contract with Ugu with new terms and conditions,” he said. The contract came to an end in August 2011, Ugu District Municipality has utilised this service provider’s services on a month to month basis while paperwork for a revised contract with new terms and conditions are being finalised.

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Ugu’s tender delays blamed on serious cash flow problems

FOLLOWING a report of delays in tender advertisement and allocations in Ugu municipality, Democratic Alliance councillor, Dave Snashall said delays could well be attributed to the cash flow problems the municipality is facing. “Ugu currently owes its creditors R323 million and has a bank balance of R42 million. I’m not on that portfolio committee, but I can say the municipality is facing serious cash flow challenges. It simply does not have money to pay tenders,” Snashall said.

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