KwaZulu-Natal Transport MEC Siboniso Duma has come under scrutiny after a video surfaced in which he explains to unpaid contractors that changes in the government payment system are behind the province’s current payment crisis.
In the video, Duma tells contractors that the rollout of a new national accounting system has caused technical complications, leading to significant delays in processing invoices. He cited glitches in the Basic Accounting System (BAS) following National Treasury’s implementation of the Standard Chart of Accounts version 6 (SCOA V6) on 1 April 2025, which replaced the previous SCOA V5 system in use since 2017.
According to the department, over 2,000 construction companies and service providers are affected, with pending payments totaling more than R1.5 billion. About R600 million of this relates to transport-related projects. The MEC acknowledged that these delays violate the government’s 30-day payment obligation to suppliers and could reverse progress in road construction and service delivery.
Duma stated that the department is working closely with National Treasury and Provincial Treasury to resolve the technical issues. He claimed that in recent days, some contractors have already started receiving payments and that loaded payments are now being processed.
However, contractors remain frustrated. Many say they have gone months without payment despite submitting invoices, leading to halted projects such as the R500-million road expansion between Tula Tula and Empangeni. The DA in KZN has since demanded full transparency from Duma, including a breakdown of unpaid invoices, reasons for non-payment, and a clear timeline for settlement.
As the province grapples with this crisis, the impact is being felt beyond construction firms: workers, families, and local economies are suffering due to delayed wages and stunted job creation. Watch the full video where MEC Duma addresses the contractors and explains the government’s position on the payment system changes