The CoE’s MMC for Finance, Jongizizwe Dlabathi, held a Small, Medium and Micro Enterprises (SMME) Stakeholder Engagement session on October 11 at the OR Tambo Government Precinct in Germiston.
The session addressed the critical issue of the city’s delayed and non-payment of SMMEs and presented opportunities for business growth and development.
Dlabathi acknowledged the city’s backlog in processing payments, stressing that efforts are underway to clear overdue invoices.
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“The city is aware of the outstanding invoices, and we are following the necessary processes to ensure the correct payments are made,” said Dlabathi.
To tackle this issue, the MMC announced plans to set aside R500m to help clear the backlog and support struggling small businesses.
Dlabathi also introduced the Debt Relief and Rehabilitation Incentive Scheme and highlighted the importance of revenue enhancement. He stressed that increased revenue generation by the city would enable it to fund more projects and create job opportunities for the unemployed.
Businesses at the session expressed frustration over the delayed payments, with some claiming they had not had payment for work completed three years ago.
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“This affects our ability to pay workers and maintain services. We hope the R500m the MMC plans to set aside will resolve these issues,” a business owner said.
Dlabathi reassured the attendees that the city aims to resolve this backlog of payments from the last financial year by the end of December.
Business owners also requested the fair distribution of contract opportunities, advocating for a rotation system allowing all businesses a chance to work with the city.
Concerns about corruption were also raised, with allegations that some officials demand bribes in exchange for processing payments.
Business owners called for lifestyle audits of the officials suspected of living beyond their means, claiming corruption severely impacts small businesses.
The city is committed to addressing these concerns and ensuring SMMEs are supported and fairly integrated into larger contracts.
