Contractors to receive financial assistance

THE department of roads and transport signed a memorandum of understanding (MOU) with Tebfin Proprietary Limited, a company specialising in offering financial solutions to SMME’s to enable them to carry out their services without the burden of having a financial gap on Friday.

Roads and transport MEC, Lehlogonolo Masoga, said the purpose of the MOU was to formalise the working relationship between the parties, and to set a platform for the parties to cooperate with each other in the provision of services.

He said it was aimed at addressing challenges confronting contractors.

“Currently very few emerging construction enterprises are likely to meet the financial requirements as set by both public and private sector institutions, and it is for this reason that the MOU was signed,” Masoga explained.

He said the department had a problem with contractors who did not complete projects.

“When they are asked why they are failing to complete their jobs, they normally tell us that they face capacity challenges. We tried to analyse the word ‘capacity’ and discovered that they simply don’t have the funds to complete the projects.

“We believe the arrival of Tebfin will boost these contractors. They will be able to buy diesel, machinery, pay their employees and do well in their projects. We have never done anything like this before,” he said.

Speaking on behalf of Tebfin, Richard Bryce said funding would depend on contractors’ requirements. He said they were also working with other departments on provincial level as well as some on national level.

He said the company wanted to provide financial solutions to service providers who would be contracted to the department of roads and transport and who needed financial assistance to carry out their projects in terms of their contracts with the department.

“The deal will run for three years,” Bryce said.