Local news

Mpumalanga contractors claim millions owed for completed government projects

Companies claim they have not been paid since 2023, despite completing projects.

A number of Mpumalanga companies allege that they have not received payment from provincial government despite having completed the projects they were appointed for. Reports indicate that the outstanding payments amount to millions and date back to 2023.

The projects, reportedly commissioned for the Mpumalanga departments of Health, Social Development and Education, were meant to be paid for by the Mpumalanga Department of Public Works, Roads and Transport (DPWRT), which serves as the custodian of government infrastructure projects.

Investigations by Lowveld Media found that the DPWRT typically pays consultants for completed projects. The consultants then pay project managers, who deduct their fees before paying contractors.

“The DPWRT claimed that it paid the money to the accounts of the consultants, but we have not received a cent of that money over the years. This is frustrating to the core, because we are still expected to continue with other projects,” said a director of one of the companies, who asked to remain anonymous for fear of retaliation.

ALSO READ: Coghsta seeks to overturn R470m execution order in High Court

Another company’s director said the problem lies with the appointed project managers. “We just do not know how we have to survive under the circumstances. The project managers literally pocket the money for their personal benefit,” said the director.

Five companies implicated a DPWRT official, Phumudzo Sinugo, as one of the project managers who should be paying the companies but has allegedly failed to so.

When asked about this, Sinugo said he was unable to provide a meaningful or informed response without being given the names of the companies.

“I remain willing to respond to any allegations concerning me. However, in the interest of fairness and accuracy, I would still require the specific details of the allegations, including the projects concerned, the companies allegedly owed, and the basis upon which my name arose during your investigations,” he said.

DPWRT spokesperson Bongani Dhlamini acknowledged receipt of Lowveld Media’s enquiry.

“The department treats allegations of misconduct, maladministration and non-payment of service providers with the seriousness they deserve. However, in order for the department to conduct a fair and comprehensive investigation and provide an informed response to the issues raised, it would be advisable for you to submit substantial information relating to the allegations,” he said.

Dhlamini said that the department remains committed to transparency, accountability and ensuring that all matters brought to its attention are dealt with in accordance with applicable legislation, policies and procedures.

Journalists’ right to protect confidential sources is rooted in the freedom of expression and governed by varying degrees of legal privileges in terms of the Constitution of the Republic of South Africa’s Bill of Rights, Chapter 2, Section 16 (1) (a) read along with (b).

“The department, the consultants and the project managers must just call all the companies that were appointed and establish which ones are being owed because they have the database,” said another company director.

At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!

Support local journalism

Add The Citizen as a preferred source to see more from Lowvelder in Google News and Top Stories.

Riot Hlatshwayo

Riot Hlatshwayo is a senior journalist based in Mbombela, Mpumalanga. He is the former Bureau Chief of the Sowetan Newspaper in Mpumalanga. Riot has written for more than 16 publications in South Africa and abroad. He is also a former journalist at the South African Broadcasting Corporation (SABC).
Back to top button