The KwaZulu-Natal Department of Transport and Human Settlements has expressed deep concern over the delay in payments to more than 2,000 service providers, amounting to over R1.5 billion.
MEC for Transport and Human Settlements, Siboniso Duma, said the department remains committed to transparency and accountability and is working urgently to resolve the situation.
“In particular, we are extremely worried about the delays in the payment of service providers who are rendering services to the department across all corners of the province,” Duma said.
The department revealed that R600 million is expected to be cleared this week, with the remaining R700 million scheduled for payment over the next two weeks.
Many of the affected service providers have reportedly been waiting for payment since January 2025. These include: Construction companies working on roads and bridges, public transport service providers and other general suppliers.
Duma confirmed that while some affected service providers have already met with the department to receive apologies, the root of the issue lies in a system transition.
“We continue to work with the National Treasury and Provincial Treasury to deal with technical glitches in the Basic Accounting System (BAS),” he said.
The delays follow the National Treasury’s implementation of a new version of the Standard Chart of Accounts, known as SCOA V6, which came into effect on April 1, 2025, replacing SCOA V5 that had been in use since 2017.
“Admittedly, this transition is not only affecting suppliers but also has the potential to reverse the gains we have made in terms of accelerating the roll out of road construction projects. These delays will have severe implications for service delivery,” Duma said.
He further acknowledged that the delays are a serious violation of the department’s 30-day payment obligation to suppliers.
Duma said Senior management, led by Head of Department Siboniso Mbhele, met on Thursday, to discuss the crisis and formulate a “radical intervention.”
Chief Financial Officer Thabani Nkosi and his team have been tasked with ongoing engagement and updates to the affected service providers.
“We once again apologise to our trusted contractors and service providers for this situation that is beyond our control,” Duma said.
The department announced that a press briefing or media statement would be issued soon to outline a comprehensive turnaround strategy.
“We have an obligation to account for every cent we spend, for every challenge we face, and to reflect on every success we achieve as a result of ongoing support from the people of KwaZulu-Natal,” Duma said.
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