CEDA-Funded SMEs Lament Over-Pricing Of Suppllies
Lesedi Mkhutshwa | Monday May 15, 2017 18:00
According to business owners, those who engage in these unfair business practices do so because there is a guarantee that CEDA will certainly pay because it is a Government -funded entity.
The entrepreneurs raised their concerns during a media tour of Local Enterprise Authority (LEA) projects. The owner of Contagious Construction Company and a multi-residential housing business located at Tawana ward here, Mishingo Dabutha said that he was funded by CEDA last year with over P1.6 million and managed to complete a five-unit facility of two bed-roomed houses in six months, each comprising a combined bath, toilet, living room and open kitchen.
He said that the normal price for a bag of cement in the area cost close to P65, but he got them at P85 from a service provider.
The entrepreneur added that over-pricing of the material led to shortages of other components such as aircons, carports and others, which were supposed to have been budgeted for to fully complete his multi-residential project.
He also said that it is a shame for some businesses to be engaging in unfair business practices at a time when the Government is trying to empower its citizens.
“The over-priced material is even much cheaper when imported from countries such as China or even neighbouring South Africa,” he said.
Dabutha called on the Government through different schemes such as LEA and CEDA to guard against service providers who engage in unfair business practices.
Another business owner, Gladys Mothei of Lalla Villa Guest house, which is still under construction, said that the project cost over P2.2 million of which P1.4 million, was funded by CEDA.
Mothei shared Dabutha’s sentiments. “We are sourcing most of our materials from local hardwares, but their equipment are highly priced more than the normal price on quotations,” she said.
She also said that such actions portrayed by building materials suppliers should be guarded against.