Parliament on non-payment of contractors in Port Elizabeth by Department of Human Settlements

Human Settlements Committee slams department

The Portfolio Committee on Human Settlements has voiced dissatisfaction following the Department of Human Settlements’ failure to pay small and emerging contractors in Port Elizabeth. The department also failed prepare a comprehensive report on such payments as instructed by the Committee last week.

“This is gross insubordination; the Department of Human Settlements was given five days to comply and report on how it had resolved the matter, involving non-payment of emerging contractors,” said Ms Nomhle Dambuza, Committee Chairperson. She said the department’s failure to pay small contractors hindered progress in achieving the government’s commitment and objective of promoting and developing the entrepreneurship principle.

Last week, the Committee on Thursday advised the department to facilitate payment for the small contractors who had conducted work on behalf of the department but had not been paid since 2007. The small contractors had complained to the Committee, and a consultant was appointed to investigate the complaint contractors raised and verify areas of dispute in an endeavour to find an amicable solution.

A meeting between the consultant and the contractors was not successful, and therefore could not finalise the process of resolving the matter.

“The Committee is of the view that the response by the department is a defence approach as it (department) is trying to shift the blame for non-payment. The Committee’s work is to ensure that the people, in particular, the vulnerable communities are treated in a fair and just manner, hence the small contractors belong to that category,” said Ms Dambuza.

She further said that, the department should avoid a situation whereby it finds itself colluding with established contractors, intentionally or not, and putting small contractors in a devastating situation.

“The country is experiencing a challenge where emerging contractors do not grow beyond an emerging-status, and are subsequently phased out. That cannot be right,” Ms Dambuza said.

The Committee resolved: “The department was given three weeks to investigate and finalise the matter of the PE contractors and report back to their Executive Authorities in all Spheres of Government, on resolved and outstanding matters, with recommendations. Furthermore, the decisions taken should be communicated to the Chairperson of the Portfolio Committee.”

For media enquiries or interviews with the Chairperson, please contact:
Temba Gubula
Tel: 021 403 8307
Cell: 078 735 8809
E-mail: tgubula@parliament.gov.za 

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