City of Tshwane Denies Upfront Payment Claims for Lynnwood Road Contractor
City of Tshwane denies upfront payment claims for Lynnwood Road contractor. The City of Tshwane has denied claims that it has made an upfront payment to a contractor hired to widen Lynnwood Road and add Bus Rapid Transit lanes. Spokesperson Lindela Mashigo said on Wednesday that the city has intervened to assist in resolving an apparent payment dispute between the contractor and subcontractor working on the project. This project has been marred in delays, leading to traffic disruptions in the capital city.
Tshwane Rejects Allegations Amid Subcontractor Dispute
A subcontractor claims that the contractor hired by the city was paid upfront, something which is disputed by the city. “The City of Tshwane notes with concern allegations that a main contractor in the road construction project on Lynnwood Road was paid by the city prior to the commencement of work,” said Mashigo. “The city would like to put it on record that these allegations are malicious and unfounded. No payments were made to the contractor in December 2024 prior to the completion of the actual work.
“As a matter of principle, the city applies a strict procure-to-pay process which ensures that payments are effected only once goods or services have been delivered and verified. The monies owed to the subcontractors are based on contractual agreements between the main contractor and its subcontractors.” He said it is important to note that the city has limited authority to engage in the internal business arrangements of contractors.
The denial comes after subcontractors downed tools on Tuesday, 19 August 2025, halting work on the Lynnwood Road project due to alleged non-payment of invoices. The stoppage has caused further delays to an already troubled initiative aimed at widening the road and adding dedicated lanes for the Bus Rapid Transit system, exacerbating traffic woes for commuters in Pretoria’s eastern suburbs.
Opposition parties and critics have accused the city of contravening the Municipal Finance Management Act (MFMA) by allegedly authorising full payment to the main contractor before work commenced. These claims suggest the payment was made in December 2024, potentially violating rules that require verification of delivered services before funds are released. The Tshwane Metro has firmly rejected this, insisting on its adherence to a rigorous payment process.
Project Delays and Traffic Disruptions Plague Commuters
The Lynnwood Road upgrade, a key infrastructure project, has faced repeated setbacks since its inception. Intended to ease congestion and improve public transport options, the work has instead led to prolonged road closures and diversions, frustrating drivers and residents alike. Recent subcontractor walkouts have only compounded these issues, with no clear timeline for resumption.
City officials have stepped in to mediate the dispute between the main contractor and subcontractors, aiming to get the project back on track. Mashigo emphasised the city’s role in facilitating resolution while respecting private contractual obligations. “We are committed to ensuring the project progresses smoothly for the benefit of our residents,” he added.
Broader Implications for Municipal Procurement Practices
This controversy has sparked wider discussions on transparency in municipal tenders and payments. Critics, including political figures, argue that such disputes highlight systemic flaws in how contracts are managed, potentially leading to wasteful expenditure and service delivery failures. The MFMA requires strict oversight to prevent irregularities, and any proven breach could invite audits or legal action.
Subcontractors involved have voiced frustration over delayed payments, claiming they are owed for work already completed. One anonymous worker told local media: “We’ve been waiting for months, and now the whole project is stalled.” The main contractor has not publicly responded, but sources indicate negotiations are underway.
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