A group of construction firms in KwaZulu-Natal has made a bombshell claim accusing the Department of Public Works of a tender scam around government construction projects.
In an exclusive interview with IOL, the group of more than 10 firms, including women-owned companies, called on KwaZulu-Natal Public Works MEC Martin Meyer to intervene as they now feared for their lives.
"How it works is a tender is advertised. The main contractor then appoints sub contractors including women as part of government's policy to empower women owned contractors," explained a woman construction owner, Lungile Zuma. "The department does not pay the main contractor the total due despite the work being completed as agreed. This means sub contractors are not able to be paid. The main contractor is then left with no option but to withdraw from the project due to non payment. The department then advertises a new tender for completion of the project and this value is very often far more than the original value.
"Woodlands Primary School in Pietermaritzburg is an example where this has happened. The contract value was R42 million. Many of us have not been paid what was owing for the past year despite the work almost being complete now. After the contractor finally withdrew due to non payment, the department put out a new tender for the same project to the value of R47 million. With most of the work done how can they advertise it for more than the original scope of work which has already been approved and completed? It's a common practice and that's why we are saying it's a scam. We want our money for work done. This government must honour its obligations and pay," Zuma told IOL.
The group of sub contractors also cited Greys Hospital in Pietermaritzburg as another example where the main contractor has abandoned the project with 90% of the work completed. "I am a 28 year old woman owned construction company, I support my family and am now fearing for my life as I had to take out loans to keep afloat due to non payment for the past year. Public Works officials kept visiting us on site asking us to work faster to complete the job and that we will be paid. This didn't happen. I now have loan sharks knocking on my door every week, some have threatened my life if they don't get paid. How can the department treat women like this yet they say they want to empower us? We did the work and deserve to be paid. They cannot tell us there is no money," explained Themba Khanyile whose company provided tiling services to Greys Hospital and is owed over R400,000.
Her story was echoed by all the sub contractors who spoke to IOL — with one adding that his planned wedding this month had to be cancelled due to the payment issues from the department. Another was admitted to hospital and is currently battling depression and is suicidal after losing her vehicle and home.
They have called out Meyers for failing to address their concerns - and hit back at the conference on construction mafia.
"Are they not paying us because they are labelling us all as construction mafia? We have done the work. We have a valid contract with the main contractor. I am one of those main contractors with a direct contract with the Department. Yet we still don't get paid. We are told there is no money. How then does the Minister of Public Works want to turn the country into a construction site without money? Must we work for free?" asked Zuma.
Their concerns come as key role players met this week in Durban at the country's first conference to address challenges facing the construction sector. Government vowed a crack down on so called construction mafia - some disguised as business forums which have been demanding a stake in all government construction projects. They have been blamed for delays and stoppages as a result of their mafia like actions which include holding projects to ransom by arriving armed and halting work on site.
But, contractors who spoke to IOL all decried the generalisation, saying they were against any form of extortion or violence.
"We are family owned businesses, trying to earn an honest living for our families. None of us have gone in guns blazing demanding work. We applied through the due process, signed a valid agreement with either the Department or the main contractor and worked hard for the past year to ensure public entities like Greys Hospital is completed. We were even told that the Department is paying private rentals to house doctors and nurses so we must finish their residence at the hospital quickly. We all worked in good faith, sold our cars, took out loans just to keep going. Now we are left out of pocket and the department will just retender? What about us? What about all the work we put in? The main contractor has not been paid by the Department so none of us can be paid and this was confirmed by department officials,' added Curt Breda chairperson of a business forum in Pietermaritzburg.
Approached for comment, the provincial Department of Public Works said it was investigating the matter and will respond in due course. IOL will update the story once received.
IOL