Payment issues slow Mooi River rehabilitation

2016-07-21 11:03


Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Pietermaritzburg - Claims of no payment and counter claims of no work have bogged down the rehabilitation of Mooi River town after phase one of the project.

About nine emerging local Mpofana companies were contracted to perform specific services in the project which is part of Cogta’s rehabilitation of small towns.

With R5 million having been committed to the first phase of the project, the subcontractors said they had provided services such as building toilets and vendors’ shelters, painting road marks, and erecting sign boards, street signs and humps.

Upon finishing the work, the subcontractors said they were told the Mpofana Municipality had not paid the main contractor.

One of the subcontractors, who asked not to be named, said they had been left in the dark as to when the payment would be made.

“For four months small companies from the four wards invested all they had in this project. Although the financial year has ended, we have received nothing. It is difficult when you know that money has been committed to the project yet the service providers have not been paid,” said the source.

Municipal manager Max Moyo said the payment had been delayed because they needed to verify some of the claims submitted by the small contractors.

“We have a main contractor whom we deal with. The subcontractors were given work as a way of empowering them.

“The subcontractors submit their invoices to the main contractor and the main contractor consolidates all the claims before submitting them to us. Now the problem is that in some instances people are claiming money for where there has been no work done. We can not honour that claim,” he said.

Moyo said the municipality would pay all the verified claims before end of business yesterday.

“The other problem is that some of those subcontractors do not have money in their bank accounts to cover the costs.

“As the municipality we cannot make upfront payments because there is no guarantee that the work would be done,” he said.

Moyo said phase two of the project, which is expected to cost R3 million, would start soon.

The main contractor, only identified as Sibisi, said he was not allowed to speak to the media.


Read more on:    pietermaritzburg

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

Competition regulation for a growing and inclusive economy

ADVERTORIAL: The Competition Commission of South Africa is conducting advocacy work in the South African automotive aftermarket industry and has gazetted a Draft Code of Conduct for public comment.

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.