The Ekurhuleni Metro’s persistent failure to pay service providers on time has become a serious crisis, which hampers service delivery and places further strain on the Metro’s already fragile infrastructure.
According to a joint report by the Departments of Economic Development and Finance, which was tabled to the Council on Tuesday, tender processes are often only finalised after the prescribed period of 120 days.
This administrative foot-dragging delays project planning, undermines service delivery and jeopardises essential infrastructure projects.
The report indicates that some contractors have had to wait years for payment. These delays force contractors to halt projects, threaten jobs and leave construction sites vulnerable to vandalism.
The end result is higher construction costs and further delays – a double blow for communities in urgent need of development.
In addition, the Metro is increasingly exposed to legal action. Contractors are turning to the courts to enforce payment, which could lead to cost orders against the Metro, leaving it liable to cover legal expenses. This puts even more financial pressure on an already constrained budget, to the detriment of taxpayers who pay for essential services.
This is unsustainable, and poses a growing financial risk to the Metro and its residents.
The Freedom Front Plus (VF Plus) has taken note of the proposals for a communication system to keep service providers up to date as regards payments as well as disciplinary action against officials who deliberately delay payments.
The party will keep a close eye on the implementation of these proposals and hold the executive accountable.
Timely payment and an efficient procurement chain are not only core administrative functions, but also crucial requirements for sustainable service delivery, economic stability and safeguarding taxpayers’ money.
The Metro needs to take decisive steps to eradicate maladministration and restore service delivery to residents.
