Company Receives Payment after Intervention by Small Business Development Committee

The Committee sharply raised disgust to contractual arrangements between Cell C, Huawei and Brolaz which delayed the payment of Boniswa Corporate Services for 16 months

CAPE TOWN, South Africa, October 26, 2017/APO Group/ -- 

The Portfolio Committee on Small Business Development has welcomed payment of Boniswa Corporate Services by Cell C in June 2017 for work completed in December 2015.

The Committee sharply raised disgust to contractual arrangements between Cell C, Huawei and Brolaz which delayed the payment of Boniswa Corporate Services for 16 months.

The Committee was disturbed more by the fact that Cell C continued to generate income through Boniswa’s product, while Boniswa Corporate Services laid off workers due to lack of income.

At the same time, the Committee dealt with a similar problem affecting Neela Trading and Mobile Diesel Supply after it was asked for intervention.

They accused Ericsson South Africa of bullying and giving them an uncaring attitude.

The Committee then called Ericsson together with Neela Trading and Mobile Diesel Supply into a meeting held on Wednesday, and expressed anger when Ericsson failed to explain why it failed to honour contractual obligations signed on 7 December 2016.

According to the contract, Ericsson was supposed to pay Neela Trading within 14 days, from the day of signing the agreement, for undisputed invoices and within 30 days for disputed invoices. 

“This Committee will not rest until such time that small businesses are treated fairly by big businesses, we will even legislate, if need be, to protect small businesses that are key to job creation than any other player,” said Ms Ruth Bhengu, the Chairperson of the Committee.

The Committee later engaged companies in the telecommunications sector to look at how disputes between big and small businesses could be resolved without the involvement of Parliament and the courts.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.