Municipality harshly criticised for delays in housing payments

The management of Umdoni Municipality came in for a severe roasting from a housing contractor for undue delays in approving payments.

Venting his frustration, Mr Jason Morsink of MGM Contractors made an impassioned plea that contractors be paid on time, in order to sustain their workforces. MGM is currently working on the Malangeni Phase Two Rural Housing Project.

The funding for housing contracts is sourced from the KZN Department of Human Settlements.

It takes the contractor almost two weeks to prepare invoices which are then submitted to Umdoni. Verification of the invoices and processing for payment takes too long.

The undue delays impact on cash flows and the stress experienced by contractors is unacceptable. Mr Morsink cited a case where he had experienced a 90 day interval between submitting invoices and receiving payment.

Portfolio Committee Chairperson, Councillor Mngadi, enquired whether the invoices were being “sold”.

He requested officials to ensure that invoices were processed promptly, thus avoiding questionable delays.

  AUTHOR
MSCRS Reporter

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