Transport contractors in KwaZulu-Natal are buckling under the combined weight of rising fuel costs, escalating steel prices, and outstanding payments dating back to 2025, prompting an urgent intervention from provincial transport authorities.
Following a meeting with frustrated contractors, KZN Transport MEC Siboniso Duma acknowledged the growing crisis and assured service providers that efforts are underway to resolve the payment backlog. The delays have pushed many subcontractors to the brink, with some having exhausted overdrafts and credit facilities from banks and material suppliers.
“The reality is that in our country, the unemployment rate is high, fuel prices are always going high, and steel prices in the construction industry are rising,” Duma said. He noted that many contractors remain on site and are still working, but “they’ve been pushed to the corner.”
The MEC cited the migration from the SCOA 5 to SCOA 6 financial system as a major technical challenge contributing to payment delays across the province. He also pointed to a delayed national budget passage in the last financial year and the fact that the province receives the Provincial Roads Maintenance Grant (PRMG) on a quarterly basis.
“We are currently, as part of the solution, talking to national treasury that if at least they could frontload that grant, it is going to be a rescue system for the cash flow in the province,” Duma explained.
To address the immediate crisis, the department has agreed to prioritize invoices older than 60 days. Starting immediately, payment cycles will run on the 15th and at the end of each month.
Duma also outlined several support mechanisms, including a new tracking system at headquarters to monitor all invoices and ensure they do not exceed 30 days. Procurement will be centralized at the provincial level, with senior officials tracking regional activity.
The MEC stressed that the department will refrain from issuing new tender appointments unnecessarily until the payment imbalance is resolved. Contractors also suggested that the head of department write letters to banking sectors and credit providers to acknowledge work completed but not yet paid.
Regarding subcontractors specifically, Duma clarified that the department holds contracts only with main contractors. However, he said the department is listening to subcontractors’ concerns because remittance reflects their portion once main contractors are paid. “As long as we pay well the main contractors, then you don’t have the problem with subcontractors,” he said.
Duma has committed to reconvening with contractors at the end of July. “Three months from now, I do want to go back and meet them. By then there must be an improvement which will be tangible,” he said.
The KZN transport department manages a R14 billion budget for the current financial year, with nearly R10 billion directed toward infrastructure. Duma noted that last year the department produced the best project in the country, but warned that sustaining such standards requires maintaining transparency, accountability, and strong relationships with service providers.