Building company blames Maputo Council for delays – Mozambique

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Building company blames Maputo Council for delays – Mozambique

6:56 CAT | 05 Sep 2017

Voa (File photo) / Maputo Council

The Mozambican building company CETA has taken out full page advertisements in the daily papers to denounce Maputo Municipal Council for delays in two road building jobs.

CETA was stung into this action by claims that the real problem was “disorganisation” within CETA. It was also said that the Municipal Council is up to date with its payments to CETA, which the company strongly denies.

The roads concerned are Rua da Igreja, in KaMavota urban district, and Rua C, in Katembe. CETA says that right from the start of these jobs, they have been plagued with the Council making alterations to the plans, while building is under way. “This has caused continual delays in the initial calendars, and these delays are not CETA’s responsibility.

Matters are made worse by the Municipal Council’s failure to honour the agreed payment schedule. In July, the company said, CETA urged the Council to pay all outstanding debts, but “to date this request has not been satisfied”.

Throughout the civil construction sector, CETA said, the central state and the municipalities delayed making contractually agreed payments. This behaviour “causes serious financial constraints, and endangers the conclusion of jobs on time by the contractors”.

When the owner of a building job fails to pay the contractor as agreed, “this unjustly penalises the contactor, and can have profound social consequences, such as delays in paying building workers their wages”.

To make matters worse, CETA adds, current bank interest rates of around 30 per cent, make it impossible for businesses to take out bank loans that would fill the gap left by the Council’s failure to honour its contractual obligations.

Despite this indictment, CETA says it still believes in the institutions of the state and the municipalities “and will do all in its power to continue contributing to the development of the country and of the civil construction and public works sector in particular”.

Source: AIM