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Duma seeks Treasury meeting over late contractor payments

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By Lebone Rodah Mosima

The KwaZulu-Natal’s department of transport is seeking Treasury intervention after warning that irregular monthly cash releases are leaving some road contractors unpaid beyond the 30-day deadline.

The irregular payments, according to MEC Siboniso Duma, add pressure on businesses responsible for maintaining and building the province’s 34,000km road network.

News24 reported last week that the uMzimkhulu River Bridge rehabilitation project on the R102 near Port Shepstone remained suspended at 56% completion after contractors downed tools, with the department owing contractors R31.5 million.

Duma last week presented the department’s quarterly performance report, annual performance plan and 2026/27 budget plans, saying he was concerned with the impact of technical glitches in the basic accounting system, which delayed payment of invoices to contractors and other service providers.

“This resulted in delays in paying for invoices to our contractors and service providers in general. We are still recovering,” he said.

The department said its budget allocation for the 2025/26 financial year was just over R13.5 billion, which was used for infrastructure rollout, improving public transport, and refining law enforcement and road safety campaigns.

“From the R13, 5 billion kept by Treasury, on a monthly basis we need around R1,1 billion to R1,2 billion to pay service providers and, more especially, contractors responsible for the maintenance and construction of over 34 000 kilometres of road networks,” the department said.

“Unfortunately, at times, the department of transport gets R200 million, R500 million or R700 million from Provincial Treasury. As a result of the shortfall, there are service providers that do not get paid within 30 days after submitting their invoices.”

The department said newly appointed Head of Department Zibusiso Dlamini was also continuing to meet Treasury to address the matter.

“The HoD has he also met with the Director General from the National Department of Transport. There are ongoing discussions following our request for a monthly payment from our conditional grant,” it said.

“We understand the difficulties faced by our contractors and their families.”

Duma had scheduled a meeting with contractors and service providers on Monday.

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