KZN Transport ‘working’ to clear R1.5bn payment backlog
The Department of Transport in KwaZulu-Natal is
working with National Treasury to fast-track payments of over R1.5 billion owed
to 2,000 construction companies and service providers.
A group of unpaid workers stormed the department's offices in Pietermaritzburg on Thursday.
The department blamed technical glitches caused by a new payment system for the delays.
It said around R600 million is waiting to be cleared this week, and the balance of R700 million over the next two weeks.
READ: KZN Transport livid at diesel theft from construction site
Spokesperson Ndabezinhle Sibiya said they will continue to engage, and update affected parties.
"Some of the service providers who have been affected in their payments since January include the construction companies for roads and bridges, public transport service providers, and many other suppliers," said Sibiya.
"These delays will have severe implications for service delivery. In addition, this is a serious violation of our 30-day payment obligation we made to our suppliers,” he admitted.
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