A summary follows:

The Gauteng Provincial Legislature’s Portfolio Committee on Infrastructure Development engaged with contractors doing business with the Gauteng Department of Infrastructure Development on issues relating to poor performance by contractors and late payment by the Department.

Contractors highlighted the following issues as some of the challenges of doing business with the Department:

  • A lack of clear scope of work
  • Procurement policy requiring the appointment of a contractor with the lowest quote
  • A lack of adequate capacity on project management within the Department
  • The late payment of contractor

Contractors reported to the Committee that late payment by Department had an adverse impact on their ability to produce quality work and complete projects on time. They also alleged that there were instances where officials from the Department demanded bribes in order to fast track payments.

The Committee expressed concern on issues including shoddy work, the termination of contracts in the middle of a project and poor performance by contractors due to delayed payment by the Department. The Committee further stressed that Section 38(1)(f) of the Public Finance Management Act (PFMA) requires that contractors/service providers should be paid within 30 days of receipt of invoice.

The Chairperson of the Portfolio Committee, Hon Lindi Lasindwa called on contractors to report any corrupt and unethical official to the Committee, explaining that the Committee’s oversight mandate includes holding the Department accountable for all its work and processes, including the ethical delivery of service. Unethical conduct has a potential to affect the entire Department’s performance and delayed service delivery.

On 1 September 2016, the Department and client departments are expected to make presentations as per the Committees Focused Intervention Study, on the topic, ‘Poor workmanship by contractors and late payment of contractors as factors to project delays’.

For interview requests with the Chairperson of the Portfolio Committee please contact: Mr Thebe Khumalo on
011 498 5948 / 072 266 1021 email: TKhumalo@gpl.gov.za