FIRMS OWED MILLIONS: THE HERALD

THE Eastern Cape Transport Department has been questioned on why it has failed to install an information system to monitor payments to contractors in the 2010/2011 financial year.

MEC Thandiswa Marawu was asked about the system after the Roads and Transport Department was merged with Public Works in the last financial year.

She said: “During this period there was no invoice-tracking tool for roads contractors.”

DA MPL Dacre Haddon asked how many contractors were owed money for road works completed in the last financial year and the total owed to the contractors.

The department owed two contractors R10.1-million. Aqua Transport & Plant Hire was owed R6.9-million and NJV Contractors R3.2-million.

In addition, a Rams Joint Venture invoice of R2 .7-million, which was due to be settled on July 15, still had to be paid as some information was outstanding, Marawu said.

Aqua Transport & Plant Hire would be paid virtually immediately, while NJV Contractors would be paid this month, too, although no date had been set.

Regarding the information system, Marawu said the national Roads Department had developed and piloted a system applicable for goods and services rendered only.

Now it had been adapted to include road contractors and was being rolled out to all regions, the MEC said.