Service providers who are owed in the region of R4 million will not receive payment for the month of March.
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THE NORTHERN Cape Department of Co-operative Governance, Human Settlements and Traditional Affairs (Coghsta) has assured that no essential services have been disrupted due to unpaid invoices amounting to R4 million owed to service providers.
Notices were issued on March 10 to inform service providers that they would not be paid this month due to financial challenges.
The DA provincial spokesperson for Coghsta, Gizella Opperman, expressed concern that small, medium and micro enterprises (SMMEs) could be forced to wait more than six months for payment.
“Using the 2025/26 budget to pay for goods and services delivered in 2024/25 creates an unsustainable cycle of debt that undermines the department’s ability to provide adequate housing, deliver title deeds, or assist municipalities with service delivery,” said Opperman.
She also questioned whether the department would honour its payment obligations to settle its municipal accounts.
“It is a bitter irony that the same department entrusted with the oversight of local government might contribute to cash constraints and the eventual collapse of local municipalities.”
Cope member Pakes Dikgetsi added that the situation mirrored the non-payment of service providers at the provincial Department of Education, where feeding schemes and transport services were affected this year.
Coghsta acting head of communications Tshenolo Meruti-Sebolai stated that critical functions such as building leases, mobile contracts, fleet services, photocopier leases, security, electricity accounts, and network services remained operational.
“These services are structured as ongoing commitments and will continue without disruption.”
She explained that nationwide fiscal constraints and budget cuts had resulted in government departments prioritising core service delivery programmes.
“The department has not exhausted its budget for the current financial year. Key areas such as project implementation, support to municipalities, salaries, and municipal service payments remain a priority.”
Meruti-Sebolai added that the department had nonetheless maintained a strong track record of paying suppliers within 30 days.
"With a 98 percent payment rate, SMMEs continue to be a priority, as confirmed by reports from the Auditor-General.”
She stated that, to date, no disruptions were experienced due to unpaid municipal accounts.
“Development Bank of South Africa-funded human settlements projects remain unaffected by the current financial constraints,” she said.