Contractors in Durban are voicing their frustrations over unpaid invoices, challenging the municipality's claims of timely payments.
Image: Sipho Jack
The impasse between the eThekwini Municipality and a large group of service providers over disputes regarding payment for services rendered continues to escalate.
Durban Mayor Cyril Xaba said at a press briefing on Wednesday that the municipality had resolved all outstanding payments—covering 5 000 invoices—due to service providers, including the disgruntled group of plumbing contractors. He added that a new online financial management system had been implemented earlier this month, designed to address compliance issues, enhance budget control, and improve operational efficiency.
However, Lwazi Mdladla, spokesperson for the group of plumbing contractors, refuted Xaba’s claims that outstanding payments had been settled and that the new online system was functioning efficiently.
Mdladla and the affected group gathered outside a municipal building in the CBD to voice their dissatisfaction with the city’s handling of their claims. The group has staged protests in recent months over what they describe as outstanding dues.
“We are here to dispute what they are saying, and what the city has posted on social media about having paid out 5 000 invoices is not true; we’ve been waiting for months—some of us since last year,” said Mdladla.
Other contractors echoed Mdladla’s sentiments and described the financial distress they are facing due to unpaid invoices.
“Some of us completed jobs early this year but have yet to see a cent. The municipality keeps telling us about a new online system, but it has been failing since April 1. The network is often down, making it impossible to log transactions,” said one contractor.
Mdladla also raised concerns about the municipality making decisions that affect contractors without consultation.
“We expected the city’s leadership to consult us before implementing the system, and much of the frustration could have been avoided,” he said.
He added that the situation made them feel “disrespected and undermined”, rather than supported as small businesses.
Mdladla said it was contradictory for the city to be preparing to host the Durban Business Fair—a platform for small businesses to showcase their work—while failing to compensate contractors for work already completed.
He said payment delays have severely affected livelihoods, pushed contractors into debt, and forced many to refuse municipal work.
Mdladla appealed to city leadership to urgently resolve the payment issues and communicate transparently.
“We suspect the municipality might be out of money and is delaying payments until the start of the new financial year in July. They need to be honest and transparent with us,” he said.
However, Mayor Xaba maintained that the city’s new online system is functioning effectively.
He said the system is essential to ensure that all municipal expenditure aligns with approved budgets and complies with strict regulations under the Municipal Finance Management Act, specifically Section 65(2)(e), which requires all invoices to be settled within ten days.
The introduction of the system followed three critical findings raised by the Auditor-General and internal audits regarding supplier payments and internal controls.
The mayor said it was necessary for the municipality to urgently adopt a more secure accounting system, given past breaches, as part of restoring public confidence in its financial processes.
“This system reflects a significant move towards modernising our financial environment and ensuring better governance,” Xaba said.
He outlined several benefits of the new system, which modernises supply chain management processes and improves engagement with service providers, including:
On the new system, Xaba said:
“Our focus remains on stabilising the system and embedding best practices to ensure all valid invoices are processed within the required timeframe.”
Xaba also condemned the recent protests by service providers, saying actions such as blocking access to municipal buildings and damaging property undermine essential service delivery to residents.
“All reported incidents will be thoroughly investigated, with possible consequences including the blacklisting of suppliers and criminal proceedings,” he warned.
DAILY NEWS