Bay vendors and suppliers urged to comply with contracts to avoid loss
Stick to the scope of your contract and do not do any additional work not included in your agreements.
So said acting city manager Anele Qaba, who urged businesses who have contracts with the city to avoid doing extra work for which the city would not be legally allowed to pay them.
If the city should pay them, this would amount to irregular expenditure, he said.
Qaba said this caused delays with the processing of payments within the legislated 30 days.
In a statement, Qaba said: "If there is an instruction for your business to undertake work that may be outside the scope of work of the original contract, and anything beyond the original contract, please ensure that the proper authority is in place for you to do so."
He said the municipality has been rated number one in the country in terms of “irregular expenditure” that exceeded R12.4bn as at June 30th 2018. By June 30, 2019, the amount escalated to more than R14bn.
This is largely historical irregular expenditure dating back to the late 1990s.
"This is the situation that cannot be left unattended, and surely as the respected business communities I am certain that you would not want your business to be labelled to have undertaken an irregular transaction with an organ of state unknowingly," he said.
He said service providers needed to ensure that when doing business with the city they observed the terms and conditions of their contracts, and ensured they had a valid order number.
"If, as an example, your original contract had to do with the 'painting of Mfanasekhaya Gqobose Building – Govan Mbeki Avenue' and suddenly upon completion of the work, you are suddenly instructed to paint another municipal building, please start by enquiring from authorities prior to continuing with such work as that will lead to a problem with your invoice being unable to be settled timeously or not settled at all as that is definite irregular expenditure," Qaba said.
For further clarity, Qaba directed service providers to the city manager's office and acting chief financial officer Jackson Ngcelwane's office who can be contacted at email@example.com or firstname.lastname@example.org respectively.
"It is critically important for the city to indicate unequivocally that the city does not have an agenda of destroying businesses as the municipality is aware of the economic situation. Please help us so that we can at all times help you, " he concluded.