Housing in Southern Africa February 2016

News

Sisulu warns municipalities to pay TheMinister of Human Settlements, Lindiwe Sisulu and provincial MECs of Human Settlements recently met with more than 500 contractors and developers to discuss how to resolve and pay all due and payable invoices.

A lmost R1 billion is due to con- tractors by provinces and mu- nicipalities and Sisulu expects the undisputed invoices to be paid within seven days. She convened the urgent meeting follow- ing a national analysis of all unpaid projects and invoices as reflected in the payment systems, which found that more than R1 billion had not been paid to contractors, in respect of invoices submitted for payment. Sisulu told the Human Settle- ments Consultative Conference that she would meet the Minister of Finance, Pravin Gordhan to request that relevant measures be put in place to ensure that the National

issues o f con f l i c t between contractors, provinces and municipali-

ties. “With the Ombudsman Office, we will be setting up a structure that will mediate and work with all stakeholders to resolve disputes and cut through red tape in the best interests of the human settlements sector,” said Sisulu. Contractors are an integral part of the human settle- ments supply chain and Sisulu is determined to solve payment chal- lenges. She said, “Contractors help us to restore the dignity of our people and to provide an environment that assists themto performat their best.”

Department is able to address payment of backlogs due and payable to contractors within seven days. “The legislation stipulates that any person or company that does business with government should be paid within 30 days,” added Sisulu. The Minister also indicated that her Department would, after the State of the Nation Address, establish an Ombudsman Office to deal with