Government speeds up payment of contractors involved in Human Settlements projects

Human Settlements Minister Lindiwe Sisulu has called on all Municipalities and Provinces to speedily finalise outstanding payments to contractors involved in various human settlements projects around the country.

Many contractors have now been paid since the Minister and the Department of Human Settlements undertook serious measure to ensure that contractors were paid on time and within the stipulated 30-day period. This is aimed at ensuring that contractors are able to meet their contractual obligations and assist the Department in speeding up the creation of housing opportunities in the country.

Many Municipalities and Provinces have also indicated that they have started processing outstanding payments for contractors while some said they were about to conclude verification processes to ensure that payments are made to companies that have rendered legitimate and satisfactory services to the Department.

The Minister and senior management at the Department of Human Settlements resolved that all human settlements departments and entities should comply with the stipulations that commit Government to adhere to the payment of contractors within 30 days. This is consistent with the directives of Cabinet and the regulations of the Public Finance Management Act.

It is also in line with the directives of MinMec, which is the regular meeting of the Minister, all MECs for Human Settlements as well as the Heads of their provincial departments.

To ensure compliance, the Department of Human Settlements’ Acting Director-General, Mbulelo Tshangana requested that provincial Heads Of Departments present him a current status quo analysis detailing payments of contractors and service providers as well as outstanding claims.

Minister Sisulu has also had numerous meetings with contractors as part of her bid to ensure that companies that are contracted to do human settlements related works receive satisfactory treatment in order to ensure they help speed up the delivery of decent housing. The Minister wants the Department, working with all stakeholders, to deliver at least 1.5-housing opportunities by 2019, the end of term for the current Government.

Issued by the Department of Human Settlements. For more information please contact Ndivhuwo Mabaya on 0836457838

Press Release Date: 
Sunday, February 14, 2016