The ANC has failed to pay their birthday celebration caterers an estimated R1-million.
The 106th birthday bash in East London was two months ago and eight small business owners are still waiting to be paid.
They were contracted to supply 25000 food packs for the party faithful. They said the ANC’s failure to pay its bills had put their businesses and home lives under financial strain.
In a previous non-payment scandal arising from the event, 50 taxi owners in January occupied and shut down the ANC provincial headquarters at Calata House in King William’s Town. They demanded an R8-million payment for ferrying thousands of party supporters.
Some of of the taxi payments have been made, but South Africa National Taxi Council (Santaco) provincial leader Noluntu Mahashe could not say how much was outstanding yesterday.
Caterers said debtors and business closure were knocking at their door.
The 25000 food packages that were delivered each contained a chicken leg, a four-slice sandwich, a piece of fruit and a soft drink.
The service providers said the rate per pack was R40 which “was generous because that pack usually goes for about R80”.
The group has laid the blame at the door of ANC Dr WB Rubusana regional treasurer Ncedo Kumbaca, who brokered the deal on behalf of his party.
Kumbaca yesterday told the Dispatch he would get back with a comprehensive comment but this had not materialised by print deadline.
His immediate party boss, regional chairman Xola Pakati, could not be reached for comment.
It was not clear who had the responsibility to foot the bill between the region, the province and Luthuli House. But the ANC in Calata House said it was in talks with national leaders at Luthuli House to expedite the payment.
Said provincial secretary Lulama Ngcukayitobi: “We are following up with national leaders on the matter of the caterers and that of the taxis because we take this matter seriously. Non-payment of small businesses impacts negatively on their growth and potential.”
The business owners, who spoke on condition of anonymity fearing victimisation, said it was ironic that at the event the party had preached on the importance of speedy payment to service providers.
Senior government officials from President Cyril Ramaphosa’s reshuffled cabinet to Eastern Cape premier Phumulo Masualle and Finance MEC Sakhumzi Somyo have all commented on the importance of supporting small businesses in order to grow the sluggish SA economy.
In his State of the Nation Address Ramaphosa said: “The growth of our economy will be sustained by small businesses, as is the case in many countries. It is our shared responsibility to grow this vital sector of the economy.”
His sentiments were echoed by Masualle in his state of the province address, when he said the Eastern Cape government was “committed” to ensuring that state institutions adhered to the 30-day payment rule to safeguard the sustainability of small businesses.
“Charity begins at home. However, not with the ANC which is failing to pay R1-million to emerging businesses. Will this tendency get worse when it comes to bigger deals,” one of the business owners said.
Another one said he’d had to sell their TV set as their child was about to be kicked out of school because of unpaid fees – money the parents had expected to have in hand, if the ANC had paid its bills.
ANC national spokesman Pule Mabe had not responded to questions sent via text messages on two platforms and his phone rang unanswered all day. — zingisam@dispatch.co.za
lSee page 6
ANC owes caterers
The 106th birthday bash in East London was two months ago and eight small business owners are still waiting to be paid.
They were contracted to supply 25000 food packs for the party faithful. They said the ANC’s failure to pay its bills had put their businesses and home lives under financial strain.
In a previous non-payment scandal arising from the event, 50 taxi owners in January occupied and shut down the ANC provincial headquarters at Calata House in King William’s Town. They demanded an R8-million payment for ferrying thousands of party supporters.
Some of of the taxi payments have been made, but South Africa National Taxi Council (Santaco) provincial leader Noluntu Mahashe could not say how much was outstanding yesterday.
Caterers said debtors and business closure were knocking at their door.
The 25000 food packages that were delivered each contained a chicken leg, a four-slice sandwich, a piece of fruit and a soft drink.
The service providers said the rate per pack was R40 which “was generous because that pack usually goes for about R80”.
The group has laid the blame at the door of ANC Dr WB Rubusana regional treasurer Ncedo Kumbaca, who brokered the deal on behalf of his party.
Kumbaca yesterday told the Dispatch he would get back with a comprehensive comment but this had not materialised by print deadline.
His immediate party boss, regional chairman Xola Pakati, could not be reached for comment.
It was not clear who had the responsibility to foot the bill between the region, the province and Luthuli House. But the ANC in Calata House said it was in talks with national leaders at Luthuli House to expedite the payment.
Said provincial secretary Lulama Ngcukayitobi: “We are following up with national leaders on the matter of the caterers and that of the taxis because we take this matter seriously. Non-payment of small businesses impacts negatively on their growth and potential.”
The business owners, who spoke on condition of anonymity fearing victimisation, said it was ironic that at the event the party had preached on the importance of speedy payment to service providers.
Senior government officials from President Cyril Ramaphosa’s reshuffled cabinet to Eastern Cape premier Phumulo Masualle and Finance MEC Sakhumzi Somyo have all commented on the importance of supporting small businesses in order to grow the sluggish SA economy.
In his State of the Nation Address Ramaphosa said: “The growth of our economy will be sustained by small businesses, as is the case in many countries. It is our shared responsibility to grow this vital sector of the economy.”
His sentiments were echoed by Masualle in his state of the province address, when he said the Eastern Cape government was “committed” to ensuring that state institutions adhered to the 30-day payment rule to safeguard the sustainability of small businesses.
“Charity begins at home. However, not with the ANC which is failing to pay R1-million to emerging businesses. Will this tendency get worse when it comes to bigger deals,” one of the business owners said.
Another one said he’d had to sell their TV set as their child was about to be kicked out of school because of unpaid fees – money the parents had expected to have in hand, if the ANC had paid its bills.
ANC national spokesman Pule Mabe had not responded to questions sent via text messages on two platforms and his phone rang unanswered all day. — zingisam@dispatch.co.za
lSee page 6
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