Security company takes ECDC to court over delayed payments

Excellent Security Services is considering legal action against the Eastern Cape Development Corporation (ECDC) after allegedly going unpaid for months, with outstanding invoices exceeding R1 million for security services rendered at Fort Jackson and Dimbaza.

The dispute has raised concerns about the impact of delayed government payments on small businesses and the workers who depend on them for their livelihoods.

The security company was appointed in June 2025 under a Service Level Agreement valued at R265,190 per month. According to the company, payments were made for July 2025 but stopped thereafter. Only one additional payment covering a single invoice was made in February 2026. Four invoices for the period between August and November 2025 remain unpaid.

Company owner Xolani George said the business has repeatedly tried to resolve the matter through formal communication, including emails, meeting requests and follow ups, but has not received meaningful progress.

He said the situation is affecting both the company and its employees who rely on timely payments to support their families.

“When security companies are not paid, it affects breadwinners who depend on those wages. It also places pressure on service providers who have already delivered their services in good faith but are not paid on time,” George said.

The company says it has engaged ECDC officials through email correspondence since early 2026. The communications reflect repeated requests for payment updates, but the company says responses have been limited.

Excellent Security Services says the delayed payments have placed strain on cash flow, operations and its ability to meet obligations such as salaries and service delivery costs.

The company has criticised ECDC for poor communication and lack of accountability, saying this undermines trust in public procurement systems and the role of state entities in supporting small businesses.

With the matter unresolved, the company says it is now left with little option but to consider legal steps to recover the outstanding money.

“After exhausting all available avenues, we now consider legal action as the only remaining option,” George said, while noting that the company still prefers an amicable resolution.

The dispute highlights a wider challenge facing small and medium enterprises in South Africa where delayed payments by government entities continue to place businesses under financial pressure.

Under the Public Finance Management Act (PFMA) and the Municipal Finance Management Act (MFMA), state institutions are required to pay valid invoices within 30 days. Failure to comply may amount to financial misconduct or irregular expenditure.

In this case, invoices dating back to August 2025 remain unpaid well beyond the required timeframe, raising concerns about compliance and financial management within the entity.

ECDC was approached for comment earlier this year. Entity representative, Luzuko Maneli acknowledged receipt of the query and indicated it would be escalated internally. No further response has been received.

Excellent Security Services says it remains hopeful the matter can still be resolved without litigation but insists urgent intervention is needed to protect operations and employees.

The outcome of the dispute is expected to draw attention to the broader issue of delayed payments and their impact on service providers and job security in South Africa.