Sowetan

Subcontrac­tors used and abused

Loopholes allow for exploitati­on of smaller companies

- Thuli Zungu Tel: (011) 280-3086. E-mail: zungut@sowetan.co.za or write to PO Box 6663, Johannesbu­rg, 2000

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.

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