MEC Mashilo cuts underperforming contractors
18 August 2022
MEC Mashilo lamented the poor performance as a continuous threat to budget cuts.
Poor performing contractors doing business with the Department of Human Settlements in Mpumalanga came under severe hammering at a meeting by MEC Speedy Mashilo. He called an urgent meeting this week following the Department’s first quarter review session. Mashilo reminded contractors that their performance reflects on quality and efficacy of Department's service delivery. Accompanied by senior management, MEC Mashilo wanted to understand and make sense of their challenges owing to their apparent poor performance. The meeting also sought to craft solutions and necessary interventions to improving performance.
Speaking at the session, MEC Mashilo lamented the poor performance as a continuous threat to budget cuts. “Your performance is below par, thus we must take action in order to get everyone up to speed. Your failure is our failure and it bears National Treasury ramifications of budget reduction, thus cannot be tolerated”, lamented Mashilo. He added that terminations and scope work reduction are not his obsessions. However, if needs be the Department will be forced to exercise its rights under the contracts.
In airing their challenges, some contractors cited lack of services such as water from their sites, and thus increasing building costs. The issue of the subsidy quantum was also mentioned as a contributing factor owing to inflation and rising costs of building materials However, Minister Mmamoloko Kubayi recently announced increased quantum of various programmes, including houses that now costs R139 000, to cater for this challenge. The delay in payments was also reflected as another huge impediment, and could be attributed to incorrectly completed invoices. As such, contractors were advised to exercise due diligence when completing and submitting their invoices.
Notwithstanding these issues, MEC Mashilo urged them to be mindful of the Department's targets, and set their delivery within that period. In no uncertain terms, he stressed the need to adhere to contractual agreement. “We need to deliver on time, the people have been patient enough with us. This poor performance is hitting hard and adversely on the poor beneficiaries of our service. Thus, we need to be more sensitive to their plight as we go on with our work”, urged Mashilo.
Taking cognisance of issues raised, MEC Mashilo called on officials to also assist contractors, and not appear as setting them up for failure in their delivery. It was further stressed that contractors ought to strengthen their social facilitation and stakeholder management functions to avoid any form of project disruptions. A clear undertaking was made that all outstanding invoices should be paid by Friday, 19 August 2022.
Contractors that have failed to demonstrate capacity and sound schedule for completion of projects, will receive letters of reduction of scope.