The KZN department of Public Works and Infrastructure has drastically decreased its debt to contractors by more than five hundred million rand.
The department said that Martin Meyer, MEC for the Department pledged during his first 100 days in office to modify the financial model for contractor payment and adopt efforts to reduce service provider payment delays.
The Department said that these developments also form part of MEC Martin Meyer’s priority commitments as the department works towards turning its financial outlook, whilst also strengthening financial controls.
“Against this backdrop, the Acting Head of Department, Dr Vish Govender, formulated the establishment of the Rapid Response Team (RRT), which aims to tackle challenges confronting the department, whilst working to restore the department as an effective implementing agent.”
The Department added that part of the mandate of the unit is to speedily resolve the delays in procurement processes, fraud and corruption, and non-compliance with regulatory requirements especially with the payment of suppliers.
“Previously, MEC Meyer had expressed serious concern on the negative knock-on effect of delayed payments to contractors which in turn affects payments to subcontractors which further deprives taxpayers of essential services such as hospitals and schools.”
The Department added that hanging its own narrative to that of a department that works for the public, fulfills its contractual obligations and honours payments.
THE MERCURY