Mukoni T Ratshitanga
More than 7 000 Eastern Cape builders could be left jobless amid speculation that the provinces school-building contracts may be frozen by the provincial Department of Education.
The department has not paid builders for work done last month on school construction. The amount owed builders for a single school project is estimated at between R100 000 and R500 000 a month. Last months payments were due on September 26.
East Cape Building Industries Associations executive director Greg Steele says builders experienced similar problems when payments for August were not made on time.
Builders who spoke to the Mail & Guardian said the late payments had affected their ability to support their families. A builder and father of three who spoke on condition of anonymity because he fears he will be penalised by the government says his company, which has built two schools, has not been paid for more than two months. His employer has unsuccessfully attempted to discuss payment with the provincial government.
Although it is not a new thing not to work, he has had difficulties because the money is not coming. By the time it comes, you are already in huge debt; you just give it away and start another cycle of borrowing.
The builder, whose company is affiliated to the Kei Builders Association, says his employer has asked his workers for understanding and patience.
Steele this week met senior officials from the education department, seeking assurances that funds were available for the department to meet its obligations to contractors.
The association was assured the department had sufficient funds, although no assurance could be given by them as to when the payment situation would be rectified, said Steele. The department was informed that in terms of its contract it was in default.
Although the problem affects all contractors small, medium and large those likely to be hardest hit are the provinces small builders with no previous access to financial markets and government assistance. Small-“scale builders are usually contracted by the larger firms. Steele warns that the continuous delay of payments and possible freeze on building contracts may lead to a situation where the workforce may be laid off as main contractors will not be able to pay sub- contractors.
Including the builders families, those likely to be affected could number close on 100 000 people. Builders in the predominantly rural province largely depend on the government as the major provider of infrastructure.
It emerged last week that the Eastern Cape Department of Education has already overspent its allocated budget by at least R1-billion. The national Department of Finance this week appointed a joint education and finance committee to investigate overspending in provincial education departments.
Departmental representative Phaphama Msenyana did not respond to questions despite repeated attempts to contact him.