Municipality fails to pay its contractors
The Mookgophong Local Municipality is embroiled in a bitter feud with its contractors over non-payment of services rendered
LIMPOPO – One of the disgruntled contractors, MLG Enterprises says the municipality owes them almost R1 million after dispensing water to several areas since October last year.
The company’s director, George Menyatso, says they have been engaging the municipality for several months, but so far their efforts have been fruitless.
We started supplying water from Mookgophong to Roedtan towards the end of last year and are still awaiting full payment. When they do pay, it’s way less than the amount due to us.
He says the municipality currently owes MLG Enterprises R853 750.
“I have been trying to engage with the municipal manager, but all he does is promise that the matter will be resolved. He promised to pay us after paying the salaries of municipal employees, who get their salaries on the 25th, but after that, I would hear nothing. Amid the frustration, our company is unable to make ends meet. We have accounts that are in arrears. Furthermore, we are yet to purchase diesel to keep the trucks mobile.”
Spokesperson for the municipality, Naphtali Tlhoaela, acknowledges the municipality owes the contractors who have already provided services to residents.
Tlhoaela says they have enlisted to services of MLG Enterprises to supply water to areas which were hard hit by water scarcity last year.
He says the municipality assures contractors that they will be paid, but was non-committal about the exact date for the payment to be effected.
“At no point did we refuse to pay our contractors. It’s just that the municipality is currently confronted with budgetary constraints. Once our finances are back on track, we will pay our service providers what they are owed. When we entered into agreement with our service providers, we never envisaged this predicament. The problem ensued when our municipal infrastructure grant was delayed. But once the grant has been paid, we will pay our service providers as per our agreement with them. We are well aware that our failure to pay our contractors has affected them negatively. It is for this reason that the municipality, apologises unreservedly.”
Meanwhile, MLG Enterprises confirmed they have stopped their services as of last week.
