City commits to payment of contractors amid vandalism
eThekwini contractors push back against the City’s new digital invoicing system, citing delays and exclusion concerns.
Apart from pending invoices, contractors of eThekwini Municipality are rejecting the new digital system adopted by the City to make payments.
The contractors feel that the system fosters segragation, as many are not in a position to grasp how to use it. The City maintains that the system is user-friendly and trainings have been conducted.
eThekwini Mayor Cyril Xaba has assured suppliers with valid invoices that they will receive payment.
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This follows concerns raised by suppliers about delays in processing their invoices as a result of the new Online Invoicing system.
The City’s chief financial officer, Dr Sandile Mnguni, said, “Payments are ongoing; since the beginning of April over 6000 invoices, amounting to approximately R800m, have already been paid.
“A further 1837 invoices are approved for payment and scheduled to be settled, in line with applicable payment terms.
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“In addition, more than 5000 invoices are currently in the system at various stages of the approval processes.”
“The digitisation of the City’s procurement process ensures strengthening of financial governance, improving supplier payment processes, and advancing the City’s digital transformation agenda,” added City Manager Musa Mbhele.
He emphasised that the system will not be abandoned due to pressure from contractors. “The system is in place to ensure legitimacy of invoices, and to reduce invoice processing time.”
Also read: City denies payment delays allegations amid plumbers’ protest
From May 4, service providers may also visit Sizakala Centres for support with uploading invoices to their profiles on the portal.
“The Municipality will continue with training, and service providers are encouraged to attend.”
The City reiterated that acts of vandalism by service providers would not be tolerated, and those companies which prove to be involved would be blacklisted.
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