Construction SMMEs in KZN 'struggling to stay afloat'
02-05-2024
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A trust that provides support and mentorship to emerging construction companies says that SMMEs in KwaZulu-Natal are struggling due to a lack of funds.
The National Construction Incubator's acting CEO Sandile Matiwane says some R2.8-million in funds needs to be paid out by the Small Enterprise Development Agency.
He says the wait has stalled over 500 construction projects.
"SMMEs because of a lack of financial resources we are unable to get to them. We have had to put staff on short time because we couldn't afford to pay their salaries.
"Since January we haven't been able to pay full salaries. We did with the bit of money that was left and we paid 70 per cent of each employee's salary for January and February for March there was no salary. May and June there won't be any salaries until we see other stakeholders come on board so we can at least repurpose those balance sheets."
SEDA has explained it can't release the funds due to governance issues at the entity.
In November, the Pietermaritzburg High Court ordered the removal of the NCI's former CEO, Patricia Chalwa, as a trustee, after she was found guilty of fraud and misappropriating funds.
The agency says it will engage with the NCI board on the way forward.
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