Public Works launches plan to fix cash-flow failures
Public Works Minister Dean Macpherson says one of the interventions in their new construction reform plan will focus on how and where money is allocated.
He unveiled the South African Construction Action Plan on Wednesday, along with key actions aimed at addressing the root causes of underperformance in the sector and improving service delivery.
Macpherson said poor cash-flow management is one of the biggest reasons infrastructure projects stalls.
He said tighter, ring-fenced budgets will help address cash-flow constraints that have often led to backlogs and delays.
"Budgets are approved but not released on time, contractors go unpaid for months, work stops, costs climb, and then the public bears the consequences. It's a similar pattern that repeats itself.
“Our goal is to work with the national Treasury, provincial treasuries, and departments to ensure that infrastructure funds are protected and cannot be diverted to other uses."
The minister also warned that contractors, consultants, or officials who fail to deliver on projects will be held accountable.
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" It is a framework of collective and individual accountability. A plan that sets measurable targets, real timelines and enforceable consequences. Every official and accounting officer will now be measured against these metrics, and if they're unwilling to comply, they will have to make way for those who will."
The plan comes after a special meeting of ministers and MECs to tackle infrastructure backlogs, delays, and poor project delivery, which authorities say have hindered economic growth and service delivery.
Macpherson says he understands the frustration of South Africans over slow and incomplete government projects.
" They're tired of excuses for why there are so many incomplete projects and why buildings are being left abandoned. They're tired of the delays and the lack of accountability that have plagued our sector for far too long, and they're right to feel that way because I feel that way too."
He praised pockets of excellence nationwide, including KZN, whose strong project delivery is now a national model.
“ KwaZulu-Natal is a great example of how strong leadership in government delivers results from a poor baseline to being one that is now focused on delivery."
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