Gauteng Housing Department owes suppliers R172 million

Janet Semple MPL

Spokesperson on Housing

The Gauteng Housing Department owes suppliers and service providers R172.5 million, a figure that is likely to be much higher since MEC Ntombi Mekgwe’s written response to my question.

Failure to pay suppliers delays housing projects and undermines efforts to ensure access to adequate housing for the 2.4 million people in Gauteng without proper shelter. This massive bill also threatens to destroy jobs as companies owed huge amounts are unable to stay afloat.

The bulk of the money, or R70 million, has been outstanding for at least 60 days, while more than R60 million has been outstanding for more than 90 days or more.

Age Analysis

Amount

30 Days

R39 929 987.59

60 Days

R70 679 691.92

90 Days

R23 773 759.60

90+ Days

R38 165 885.25

It is equally concerning that the Department owes more than R10 million to the Merafong Local Municipality, which is clearly undermining the ability of this municipality to fulfil its own service delivery obligations.

A detailed list suppliers and other entities owed money by the department and the amounts outstanding is available here.

The law clearly requires government to pay its service providers and suppliers within thirty days. This disregard for the law is completely unacceptable and undermines service delivery.

The track record of the DA in government clearly shows that paying suppliers on time ensures better delivery to all.