At least 54 catering companies operating in Eastern Cape boarding schools have been left stranded after months of unpaid invoices by the provincial department of education.
Several of them, who asked to remain anonymous for fear of losing future work, have been working with the Eastern Cape department of education (ECDoE) for years, but eventually discontinued their services on October 19, when an email was sent to the ECDoE head of department, Sharon Maasdorp.
Many fear speaking out publicly in case they lose the only business that keeps their families afloat. Some have sold cars, taken on overdrafts, or borrowed money just to keep food on the table for pupils while waiting for the department to pay them for work already done.
What was once a secure three-year contract was gradually reduced to a month-to-month arrangement. As payments dried up, the contractors say their situation became unbearable.
One caterer said the department owes them millions of rand and it hasn’t received payment in months.
“This issue has taken a financial and emotional toll on me. I have 20 staff members that I am struggling to pay, and the suppliers that we work with are demanding their money day in, day out. I’m losing business because they no longer want to work with me,” the caterer said.
She added that she sold her car just to keep going and pay her staff. “Once the department says they don’t have money, they expect us to understand.”
Another service provider said they too are owed millions. They added that they did not have problems in the past, but they had started creeping in recently.
“It has suddenly become sad. Our payments didn’t come on time, and we are still owed for the months we worked. We’ve called, emailed, written letters.”
For others, the financial strain has already taken a heavy toll. “I don’t have an overdraft anymore because I can’t keep up. Suppliers want cash upfront. Premier bakery won’t even let us open an account.”
We prioritise the black child even when our government doesn’t care, how we keep going. They are ignoring our calls and messages. They expect us to understand. Meanwhile, we are the ones sinking.
— Caterer
Despite the growing distress, many companies cannot afford to lose this job.
“We depend on this work. This is our livelihood,” one caterer explained.
The Sunday Times reached out to the ECDoE and it confirmed that it is aware of the claims and outstanding payments.
According to the department, budget constraints led to payment delays this year, forcing them to reprioritise funds.
“Budget constraints have led to the department opting for budget reprioritisation to address the matter ... Now, we are expediting available options to address the payment issue and will ensure the matter is finalised,” it said.
But caterers insist communication has been poor and inconsistent.
“We prioritise the black child even when our government doesn’t care, how we keep going. They are ignoring our calls and messages. They expect us to understand. Meanwhile, we are the ones sinking,” one caterer said.
“It’s not as if they don’t know what they need to pay every month; these figures are preset. Overheads are known. How do you run six or seven months into a new budget and still say you don’t have money?”
The department said it is working with the Treasury to close the funding gap, but did not provide a specific date that service providers would be paid.
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