Note to Editors: Please find attached a soundbite by Retief Odendaal, MPL.
The Nelson Mandela Bay Municipality’s inability to pay service providers on time has led to another protest in the already suffering Metro.
Today, 1 August 2022, there was a protest by a service provider outside City Hall.
Trucks of the service provider barricaded the roads around City Hall due to the late payment of invoices by the Metro.
This form of protest by a contractor highlights the inability of the Metro to pay their creditors within the stipulated mandatory 30-day period.
The creditors’ re-payment rate is currently standing at 72 days as opposed to the mandatory 30 days. This is the worst performance by the Municipality in seven years.
The non-payment of service providers makes it very difficult for especially SMMEs to remain financially sustainable and has led to a number of contractors closing their doors.
It is time that the Municipality gets its financial house in order. Its collection rate has dropped to 75%. We will only be able to get this Municipality back on track if it is financially sustainable.
The new coalition government will stabilise the finances of the institution by ensuring the following:
- Collect debt due to the administration.
- Get value for money and stop corruption.
- Ensure that we pay our creditors on time as far as possible.
- Fix supply chain to get service delivery moving.
It is time to get Nelson Mandela Bay working again.