Subcontractors used and abused
Loopholes allow for exploitation of smaller companies
Subcontractors continue to get exploited by companies which get tenders, but lack the skills and capacity to deliver.
Some companies spend years without paying subcontractors, and get away with it because of prescription periods.
Fanile Mntambo, of Albemarle in Germiston, lost his company and had to sell shares and policies to pay his employees after his firm was not paid for work done.
Mntambo’s misery began in 2007 after he was subcontracted by Ramathlodi Joseph Ramalope of VIP Consulting Engineers.
The company specialises in human settlement development and has experience in civil and structural engineering, mining, municipal infrastructure and construction management.
Mntambo said VIP was appointed by the Gauteng department of housing as an implementing agent for their Ekurhuleni projects in 2005.
In accordance with the appointment, VIP had to provide a team of professionals to deliver a housing project but the company did not have a fieldworker to set up meetings, get applicants and submit forms to the department, he said.
He said Ramalope approached him after VIP’s chosen subcontractor could not deliver.
“They did not have the capacity, skill and experience to do the job and consequently gave the work to us,” he said
Mntambo said his company collected data from 9 000 housing beneficiaries on the East Rand and submitted reports to VIP.
He said VIP did not pay his company after the department paid them.
Mntambo said Ramalope’s excuse was that he erroneously paid Bahlodi Construction, the subcontractor he had initial hired.
He said he only got partpayment but the balance of R658 965 was yet to be paid.
He said the department could not help as Ramalope allegedly ignored requests for meetings. His other challenge is that Bahlodi Construction no longer existsi.
When contacted for his side of the story, Ramalope promised to investigate why Mntambo was not paid.
He offered to respond to these allegations this week.