Will you pay before a job is completed? It would be foolhardy if you did. Invariably, you will be tempting the contractor to run away with your money without completing the job.
But some right spark in the municipality thought fiscal policy allowed a contractor to get paid not only before completion of work but even before he has started on the project. Why someone would do such a stupid thing is not only absurd but also puzzling.
Action South Africa picked up this gross abuse of public funds from the municipality’s audit report. The contractor was paid R1,37 million before he had started work on a community hall damaged by the 2022 floods.
Invoices shows two payments were made to the service provider. Rubbing his hands with glee at the generosity of the municipality, the contractor bolted without even starting the work!
Action South Africa is not just making a big noise but has taken up the matter with the council demanding answers for this upfront payment. It has also asked the provincial administration to investigate this rather unusual transaction. The council is making an internal investigation. If found guilty, will the crook be fired? I doubt it. He or she may even get a promotion!
Normally the municipality is very tardy when it comes to paying service providers. Why in this case money was paid before the commencement of work is rather puzzling. Did some crooked official have a hand in it?
Well, there you have another crooked deal under the table. It may be a drop in the ocean when it’s compared to the billions that disappear in the SOEs but it reflects on the sad state of our municipalities. As of last year, only 38 out a total of 257 local councils got a clean audit. Something to ponder over when you go to the polls in a few day’s time.
T Markandan Kloof