SMMEs elated over projects drive
Road construction boosts policy of black development R40m on training guards will save huge costs and create jobs
SMALL, medium and microsized enterprises (SMMEs) have for years been complaining about poor development as they accused government of not prioritising them when awarding tenders.
This has led to several protests and disruption of government projects in different parts of the Eastern Cape.
And when the SMMEs benefit, they sometimes complain of not being paid within the stipulated 30 days after submitting invoices for work done.
But this was not the case in the Eastern Cape department of roads and public works’ multimillion-rand road construction projects.
The SMMEs subcontracted in the projects praised the department.
Nonjeya Construction was one of 12 SMMEs that benefited in the 28km road-tarring from the Tombo turnoff near Port St Johns to Isilimela Hospital.
Owner Nceba Zikhali said in the six months before he was contracted as a subcontractor, his company’s CIDB [Construction Industry Development Board] went up from Grade 1 to Grade 3.
This enables his company to qualify for bigger tenders.
“I am really grateful for the opportunity I and others received because we have been complaining to our municipality about not being given opportunities.
“What I like about how we benefited, is that we were not chosen based on our political affiliation but on the ruling party’s promise that everyone will benefit.
“Many people are still in lower grades because our municipality is not coming to the party,” he said.
Zikhali said he was hopeful they would continue benefiting in future projects.
“This is the first time that so many people have benefited from one project and we hope that won’t change.
“This is development at its best,” he added.
Closer to the KwaZulu-Natal border was another massive project where millions were spent on local subcontractors and local enterprises when the road to OR Tambo’s Nkantolo was upgraded from the R61.
Zasiphe Investments was roped in as one of the SMMEs tasked with doing concrete pavements.
The Mpinda sisters – Yandisa and Siphesihle – echoed Zikhali’s sentiments.
“It is very important to be given opportunities like this so our businesses are able to develop,” said Siphesihle.
Yandisa continued: “As women we do a more thorough job than most men, so we should be given a chance to do the job.”
Another SMME that benefited in the Nkantolo project which was officially opened by President Jacob Zuma during Tambo’s centenary celebrations, was Amanda Guda of Gag Civils.
Her company did walkways covering a 2km distance. She employed 15 people in the process.
“I can attest that as women in the construction sector, we benefit in projects. Females really benefited in the walkways projects because out of the five SMMEs, three were owned by women.
“We need such projects in order to continue developing.”
Show Love and Care owner Mcebisi Vilo said because he was one of the businesses used as subcontractors, he was able to employ 12 unskilled people from the local villages.
Noxingwa Construction owner Mlungisi Zikizela was one of the subcontracted SMMEs in the Siphethu project.
“Because I benefited from the project, I now can put bread on the table for my family,” he said.
Departmental spokesman Mphumzi Zuzile said the development of SMMEs formed part of Department of Roads and Public Works MEC Thandiswa Marawu’s plans.
“What’s important is the call made by the MEC at the beginning of this term when she said by the end of her term, the provincial government, especially roads and public works must have developed two Grade 9 blackowned companies.
“Currently the Eastern Cape has only one Grade 9 construction company and that is Rumdel which is mainly white-owned,” Zuzile said.
“Giving SMMEs opportunities is now the policy of the department where the MEC is trying to ensure that black construction companies develop and become as big as Rumdel and Murray and Roberts.
“That’s basically the aim – to ensure that we distribute the wealth to our people,” Zuzile said. THE Eastern Cape Department of Roads and Public Works has set aside R40-million to train 4 000 security guards over a period of three years.
The first group of security guards – some with military backgrounds – started training this month.
They will form their own security cooperatives.
The cooperatives will go a long way in addressing the Eastern Cape’s staggering unemployment rate of 35.5% – the highest out of all provinces in the country.
This is according to Statistics South Africa’s latest Quarterly Labour Force Survey, which was announced on October 31.
The first intake – 750 trainee security guards – will be part of the 4 000 security guards who will be trained and tasked with securing government buildings.
Training the guards to form cooperatives is a welcome development, as millions of rands are spent annually by the provincial government on private security companies.
The Department of Roads and Public Works and the Department of Health spend the biggest amount on private security guards, at R120-million and R300-million a year respectively.
But once the security guards finish their training, government will both save money and, in the process, create much-needed jobs.
Department of Roads and Public Works provincial spokesman Mphumzi Zuzile said the beneficiaries were chosen from all the regions.
They vary from military veterans, youth, unemployed graduates – who will form cooperatives and work for government. “The utilisation and dependency of the province on the private security industry to safeguard its assets and personnel comes with major challenges, such as non-payment of security guards that results in strikes and protest actions by security guards, leaving the facilities unguarded and vulnerable,” Zuzile said.
“We also deal with reports of exploitation, abuse and ill-treatment of security guards by security bosses or company owners who are only interested in making huge profits and enriching themselves.”
The spokesman said the establishment of the cooperatives was in line with Premier Phumulo Masualle’s State of the Province Address, in which he stressed the need to grow the economies of villages and townships.
“The promotion of cooperatives in the security sector will not only be a positive contributor to the economy of the province but most importantly will impact positively on the creation of sustainable and decent jobs, as well as poverty alleviation,” he said.
Once they complete their training, the security guards will become government employees and will receive basic benefits such as a pension, medical aid and the opportunity to study further, among other benefits – benefits they previously did not have while working with some of the approximately 490 000 registered private security guards, of which 52 000 are in the Eastern Cape.
The department is working with the Office of the Premier and Private Security Industry Regulatory Authority (Psira) in training the guards.