KwaZulu-Natal’s public works and infrastructure department is cracking the whip and has since declared that it is currently blacklisting seven businesses.
The soon-to-be blacklisted companies are accused of allegedly failing to deliver projects as stipulated during the bidding process.
They were not named pending the legal processes pertaining to the blacklisting, which may last up to 10 years.
This was announced by the MEC for public works, Lucas Martin Meyer, while briefing the media in Durban on Monday.
He said the issue of shoddy contractors continues to be a thorn, and contractors have become too comfortable delivering substandard work with full pay and zero consequences.
Seven contractors identified for blacklisting
“This has created a legacy of undesirable projects, many of which end up costing more than they should because a new contractor has to be brought in to complete the job of the first contractor,” said Meyer.
“The end result is that we lose money and credibility, the client loses trust in us, and the public loses faith that their hard-earned taxes are going to good use.
“Well, those days are now officially over. Under the new KZN public works and infrastructure, each and every contractor that delivers a substandard quality of work will face the consequences, starting with blacklisting them to ensure they don’t come back to do business with us.”
He went on to say that these businesses would be placed on a blacklist.
“In this regard, seven contractors have been identified and will be blacklisted. This will be done in adherence to and in line with the Public Finance Management Act.
“In this regard, the KZN department of public works and infrastructure has resolved to institute the restriction process on seven entities from conducting business with the state.”
Meyer said some of the companies have already responded to letters asking them to explain why they should not be blacklisted, and they indicated that budget constraints and poor cash flows have led to them not being able to complete the scope of work.
Property rates bill
Regarding the payments of rates to municipalities where the department’s 10 000-plus properties are located, Meyer admitted that the department was not able to settle debts.
“For the 2024/25 financial year, the total property rates bill amounted to R1.5-billion, against an allocation of R1.085-billion — even after the inclusion of additional funding obtained during the financial year from the provincial treasury.
“This scenario clearly reflects a shortfall of R421-million, which prevented the department from settling all invoices received.
“Despite our financial constraints, we were still able to honour our municipal rates obligations by paying an amount of R48-million to Msunduzi municipality, while R29-million was paid to eThekwini municipality and R20-million to various municipalities,” he said.
As a result of the financial challenges, Meyer said his department had to defer some payments until the 2025/26 allocation became available.
“This has become a recurring pattern, where the financial obligations of one year spill over into the next. In light of these challenges, the department has made a firm decision to implement a range of strategies aimed at reducing the overall property rates bill.
“These include identifying unutilised and underutilised properties that may be repurposed or disposed of.
“However, such actions are complex and must consider the future needs of the provincial government.”
