Sisulu orders contractors to be paid within 7 days
Minister of Human Settlements Lindiwe Sisulu has ordered provinces and municipalities to settle the undisputed invoices for work done by contractors within seven days.
Minister Sisulu and provincial MECs of Human Settlements met 500 contractors and developers on Thursday to discuss how to immediately resolve and pay all due and payable invoices that are outstanding for 30 days, as required by law and a Cabinet decision.
More than R1 billion has not been paid to contractors by the provinces in respect of invoices submitted by contractors for payment.
“As government we cannot sit with millions worth of work done by mainly black small contractors in the housing sector and not paid for. I want those undisputed invoices to be settled with seven days by provinces and municipalities,” said Minister Sisulu.
She told the Human Settlements Consultative Conference that she will be meeting the Minister of Finance, Pravin Gordhan, to request relevant measures to ensure that the national department can facilitate payment of backlogs, due and payable to contractors within seven days.
Sisulu said her department will after the State of the Nation Address on 11 February establish an Ombudsman Office to deal with issues between contractors, provinces and municipalities.
She added that contractors are an integral part of human settlements delivery and “we are committed to solving the payment challenges faced by the sector in order to sustain healthy business environment”.
“On my part I will ensure all your challenges are resolved including payment being made on time and unblocking all red tape,” the Minister told contractors.
Minister Sisulu and MECs listened to complaints and suggestions and promised to give feedback on all issues raised within 90 days.