A lesson of how penny stupid and pound foolish our government can be

The news that a R5 billion presidential water project in Limpopo has ground to a halt because the contractor cannot buy diesel fuel sums up governance in this country.

The contractor, who has completed 95% of the Giyani Water Emergency Intervention project, has stopped work, effectively in protest at Lepelle Northern Water – the government structure responsible for the scheme – having failed to pay an invoice for R89 000.

At issue here is not the comparatively small amount of money outstanding; even less that this is stopping a massive project to help tens of thousands of people. What is more worrying is that a government administrative system is either so inept or so corrupt that its conduct is helping to strangle a business.

This may be happening in Limpopo, but we guarantee that, around the country, there are scores, if not hundreds, of small businesses who have been pushed to the brink or forced to close – and lay off workers – because government has failed to pay its invoices.

Despite a commitment to improve payment processes and waiting times, the government is still, ironically, one of the biggest threats to small businesses.

Pay your bills and you will see jobs created.

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