Western Cape human settlements ensures contractors are paid during lockdown

Although we’re in a lockdown period, the Western Cape Department of Human Settlements has managed to settle all its payments to contractors and suppliers. As claims were received for work done prior to the lockdown, most payments (90%) were only due at the end of April.

These payments consist of R 189,59 million to 41 contractors, R 67,33 million to 14 municipalities who should pay their contractors directly, R 4,69 million to conveyancers for the Finance Linked Individual Subsidy (FLISP) and other individual subsidy programmes and R 3,36 million to other contractors.

Where Municipalities, as a result of the lockdown are unable to meet their payment commitments to contractors appointed by them, the Department will assist by paying these contractors directly. A request for assistance must however be made by Municipalities. The Department will assess each request, with a particular view if the Municipality is practicing good governance, before assistance is provided.

As much as we find ourselves in this lockdown period, I commend my officials for their diligence, as they’ve been working tirelessly to ensure these contractors and suppliers receive their payments. Many companies, particularly Small Medium and Micro Enterprises (SMME’s) are faced with unprecedented challenges and uncertainties, due to the impact of the lockdown.

The payments demonstrate our commitment to ensuring that our contractors and suppliers are in a position to fulfill their financial commitments, whether it be to employees, creditors or any other entity.

It must be noted, we follow a strict process. Part of it is that claims must reach our offices at the end of each month. These must be certified for payment by end of first week of the month, upon which payment would commence. Sometimes certification takes longer as we need to agree on the actual progress on the ground. Therefore, we pay throughout the month. Average audited payment is 15 days.

As the Western cape Government, we remain committed to work with and empower contractors from all targeted groups including women and youth.