TAKING three months to ‘initiate a process to appoint a contractor’ and another six months to ‘appoint a tenderer’ does not help the City of uMhlathuze’s under-spending predicament.
This was according to uMhlathuze City Mayor Elphas Mbatha responding to the long-awaited report outlining reasoning behind the low capital spending for the 2013/14 financial year, which served before Exco on Thursday.
With work on a tender sometimes only starting in the third quarter of the year, Mbatha said officials could not take a year to conclude processes while communities were ‘restless and waiting’ for service delivery.
‘We have to make these processes shorter. How do we explain this to angry and protesting communities? When we adopt the budget, you know there is money so start initiating the process. So start with work and not just initiate the process,’ Mbatha said.
According to the report, capital spending had been low over the past four years with 51% having been spent in 2010/11 down to 32% in 2013/14.
Reasons pinpointed for the slow spending included departments failing to plan properly, objections on awards and officials taking too long to compile reports to bid committees. Contractors, who fail to produce guarantees after appointments and validity periods not being adhered to were listed among other challenges.
‘I agree with your sentiments and commend you Mr Mayor for your bold statements published in the Zululand Observer,’ said Cllr Beena Simmadhri.
‘We must give services to our people. We owe it to the community. My heart aches when I see this. We need to play our part diligently. That is why we get paid.’
Turnaround
Municipal Manager Dr NJ Sibeko said under-expenditure was a concern to all and the administration would do everything possible to ensure a turnaround.
‘What is important is that all critical capital projects have been awarded and money committed. We have awarded over R600 million (including operational tenders) worth of projects for a capital budget of R469 million.
‘We know that some of the projects will run over two financial years.
‘We are now at a stage where user departments have to get out of offices and ensure contractors perform and put through invoices
‘As a last resort, harsh action will be taken and contracts terminated where contractors fail dismally,’ said Sibeko.
