Ricochet News

ECape Transport Department owes contractors over R36 million

Aug 17, 2018
ECape Transport Department owes contractors over R36 million

A legislature response received from the Eastern Cape MEC for Transport, Weziwe Tikana, reveals that the department owes contractors over R36 million.

"The Democratic Alliance calls on the MEC to ensure that the payment of contractors assigned to the Department of Transport in the Eastern Cape is prioritized urgently," said Marshall von Buchenroder, DA Eastern Cape Shadow MEC for Transport.

To view the response, click HERE.

According to the response, the Department's Head Office owes contractors the largest amount with 179 invoices equalling over R19 million, followed by in-house construction at R10 million. 

"The response reveals that after verifying all contractors, the Eastern Cape Department of Transport has inherited 480 invoices from the Department of Roads and Public Works to the tune of R36 million. The amounts owed to various contractors have accrued since March 2018," added Von Buchenroder.

"The failure of the department to pay these contractors is jeopardising businesses. It is destroying jobs and impacting negatively on local economies."

The following amounts are owed in municipalities around the province:

  • R19 374 196.85 at Head Office;
  • R1 174 858.18 in Amathole District Municipality;
  • R1 927 699.64 in Joe Gqabi District Municipality;
  • R1 739 379.96 in OR Tambo District Municipality;
  • R42 977.46 in Alfred Nzo District Municipality;
  • R10 420 542.26 - in-house construction;
  • R1 141 545.13 in Chris Hani District Municipality and;
  • R235 656.59 in Sarah Baartman District Municipality.

"A well-run government would ensure that contractors receive timely compensation for work done. It is unfair to contractors and employees that the department has not prioritized this matter."