Treasury MEC advises contractors to budget properly
According to the MEC, contractors often find it difficult to complete projects as a result of reckless spending.
POLOKWANE – The MEC for Treasury in Limpopo, Seaparo Sekoati has advised entrepreneurs who bid or have successfully bid for government contracts to avoid over expenditure without securing resources to maintain their operations.
Sekoati’s remarks were aimed at local small, medium and micro enterprises and non-profit organisations who recently gathered at Meropa Casino and Entertainment World for an event hosted by the Limpopo United Business Forum.
The event aimed to discuss the province’s procurement plans for the financial year and how they can best benefit small companies, and was attended by among others, departmental head Gavin Pratt.
“When government pays the first half of funds to entrepreneurs to see a project into its next phase, founders are known to spend it recklessly and are then unable to finish their designated projects in some instances.
This does not only leave a bad record for their companies, but puts government and those who are meant to benefit from it, being the citizens, at a disadvantage,” Sekoati said.
He added that continuing with a project that was left haphazardly costs more than the planned halt and he noted that construction companies are known to cut corners in cases where projects were taken up halfway in order to maximise profits.
“The problem is people think they are doing it for government, but contractors should reflect on who stands to lose most, and for who it is done – the people of South Africa,” he added.
Read more about the event in this week’s Observer.
