Drought project comes under SIU scrutiny

An ongoing Special Investigating Unit probe into Amatola Water contracts pertaining to a drought project has halted payments to the entity’s frustrated contractors.

Two contractors, speaking on condition of anonymity as they still do business with the water entity, complained to Amatola Water over the lack of payment. They had not received answers before approaching the Dispatch.

The contracts relate to work done in April and May.

Amatola Water spokesperson Nosisa Sogayise confirmed the holdup in payments, saying it was as a result of the SIU probe into contracts.

SIU spokesperson Kaizer Kganyago said investigators were having a “discussion” with Amatola Water in relation to the investigation.

Sogayise said Amatola Water would resume payments as soon as the investigation was completed.

“The delay in payment is mostly attributed to documents submitted that do not meet the requirements. There were other documents that were claiming payments on items that are not on the bill of quantity, which poses a serious challenge on payments.

“There are non-value added tax vendors who are claiming VAT, which also is one of the reasons that [led] to the delay of payment.”

She said it was “partly true” that the SIU probe was the reason for payment delays, although that was not the only reason.

“There are other documents, especially those related to water harvesting tanks and water carting tanks, that are with the SIU and they cannot be paid until the investigation is finalised.”

The delay in payment is mostly attributed to documents submitted that do not meet the requirements