Several service providers claim they were not paid for the services they rendered during the first phase of the construction of RDP houses in Middelburg, Mpumalanga.
It is alleged that between 2019 and 2023, the nine subcontractors that were operating under the Tiger Business Enterprise (main contractor), which was awarded a tender to kick-start the Rondebosch housing project, did not receive their payments.
Prep for over 6700 stands
Their services included preparation of about 6721 sites/stands by installing sewerage and water bulks, as well as erecting toilets and providing security.
One of the subcontractors said: “It is true that since we rendered our services we have not been paid and no-one is willing to assist us. In October last year, the department and the service provider failed to settle my invoice, investigated the matter, and found that all the subcontractors did not receive payments.
“Tiger Business Enterprise which was the main contractor said the department of housing did not pay them as well. We then approached MEC Speedy Mashilo who promised us that the payment would be made around December.
“After that meeting the service providers were paid while nine including me were not being paid and we confronted the department and the main contractor but we did not get straight answers.”
Owed more than R30 000
She said the department and the main contractor owed her company more than R30 000, while other contractors were owed more than R500 000 collectively.
She said the government continued with the project, employing other service providers while ignoring their concerns.
Another affected service provider said: “I have been waiting for the payment since 2022 and there is no update from the main contractor and the housing department. When I meet my former employees they keep on telling me that I was paid and embezzled the money. Between the government and the main contract, we are not sure who is refusing to pay us.
“This has affected me so badly in a way that it dented the name of my company.
“I acquired some material on credit hoping that as soon as I receive the payment I will settle the balance, but that never happened so I was blacklisted and listed as a bad payer.”
Main contractor didn’t honour commitment to pay subcontractors
Mpumalanga Department of Human Settlements spokesperson Freddy Ngobe said: “The department did pay the main contractor after the intervention of the MEC. The main contractor did not honour his commitment to pay the subcontractors.”
The service providers said Simphiwe Mbetse, a representative of Tiger Business Enterprise, has been avoiding them.
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