Non-payment row for court?
Bay housing contractors owed ‘at least R19m’
ANGRY Nelson Mandela Bay housing contractors, who claim to be owed at least R19-million by the municipality for work done since October, have instructed their lawyers to forge ahead with legal action against the city in an attempt to get their money.
On Friday, the housing forum representing contractors demanding payment, met city manager Mpilo Mbambisa and acting human settlements portfolio committee chairman Fikile Desi.
They claim they were told that the metro does not have money to pay them as it is still waiting for funding from the provincial Department of Human Settlements.
This is despite the government saying contractors should be paid within 30 days of submitting their invoices.
Housing forum chairman Andile Mtshwane said at least 30 contractors were owed money by the city, with the non-payment forcing small businesses to eventually close shop.
“If we do not get paid, we cannot add value to the metro,” he said.
“There are running costs involved. We have to pay labour, so how do you expect emerging contractors to survive if you are not paying them?
“If contractors do not perform, then we will have a service delivery problem because people will not get their houses on time.
“We suspect there is a third force involved because in order to frustrate someone, you have to hold [back] payment.
“And some of the contractors have been getting summons from suppliers already. We need a permanent solution when it comes to payment.”
Mtshwane said they had instructed their attorneys to engage with the municipality in a bid to get their money.
Vian Tee of Strauss Daly Attorneys confirmed getting the instruction from the contractors.
The attorneys would first write letters of demand to the city before approaching the Port Elizabeth High Court, Tee said.
Human settlements executive director Lindile Petuna conceded they owed some contractors money, saying that was because Bhisho was cash-strapped.
There was no way to establish how much the contractors were owed as there were still processes to be followed internally to ascertain the amount, Petuna said.
“Yes, we do owe the contractors because provincial human settlements had a financial crisis but that crisis is over and we are paying the contractors,” he said.
“The province has committed itself to pay for claims submitted that comply with requirements. We are dealing with the matter. I am meeting with the province next week as to why this and that project has not been paid.”
The contractors have called for Petuna’s head, saying he is responsible for the non-payment.
However, Petuna dismissed that, alleging there might be a third force involved in the saga.
“The non-payment of contractors is not a new phenomenon, but they are treating it like it is.
“Some of the issues they raise are not genuine because they claim we have not been meeting with them, but they change committees every week.”
He said “another element” might be involved.
The city would deal with the looming court battle when it received communication from the contractors’ lawyers or the high court, Petuna said.
Provincial human settlements head Gastor Sharpley said municipalities were responsible for paying contractors after Bhisho paid them.