Subcontractors working on government projects in KwaZulu-Natal have detailed how they are facing financial hardship due to the provincial government's failure to pay them on time.
One contractor reported accumulating a debt totalling R2 million and having to let go of his vehicle as a result.
The contractors met with KZN Public Works and Infrastructure MEC, Martin Meyer, along with the department’s acting Head of Department, Dr Vish Govender, and other senior officials to discuss their plight on Wednesday.
They said they have not been paid for work completed on projects at Grey’s Hospital and Woodlands Primary School, both located in Pietermaritzburg.
In a statement, the department said: “During the closed meeting, they expressed ongoing challenges, including not being paid for work done as far back as October 2023. One subcontractor shared how he has accumulated around R2 million in debt and was forced to sell his vehicle. Another subcontractor, a mother, explained her struggles to provide for her children and care for her family.
“MEC Meyer took the opportunity to explain how the project model works: a client or department approaches KZN Public Works and Infrastructure as an implementing agent with a request for a facility to be built. Once completed, the newly built facility is handed over to the client, who then pays KZN Public Works and Infrastructure, allowing for contractors and subcontractors to be paid in turn,” it said.
However, MEC Meyer explained that currently, a number of clients have not paid the department, which hinders payments to contractors.
As it stands, KZN Public Works and Infrastructure is owed around R700 million by various clients for completed projects.
Going forward, MEC Meyer indicated that the department would re-evaluate the current payment model to mitigate the payment risks faced by contractors and subcontractors.
He also expressed the department's intention to engage with clients who have yet to pay for completed projects to find efficient resolutions to the issue, the department said.