Excellent Security Services says it is considering taking legal action against the Eastern Cape Development Corporation (ECDC) after the state-owned entity allegedly failed to settle invoices worth more than R1.3 million for security services rendered over several months.
The dispute has placed renewed focus on delayed government payments and the strain such delays place on small and black-owned service providers contracted by the state.
The outstanding debt relates to security services provided at Fort Jackson and Dimbaza, where Excellent Security Services 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 shortly afterwards without explanation. Since then, only one additional payment — covering a single invoice — was processed in February 2026. Four invoices issued between August and November 2025 remain unpaid.
Owner Xolani George said the company has exhausted all available administrative channels in an attempt to resolve the matter, including repeated email correspondence, formal meeting requests and direct visits to ECDC offices.
“It is deeply concerning that as legally appointed service providers, we must pursue payment through persistent follow-ups, unanswered communications, and denied access to leadership,” George said.
Internal correspondence seen in emails between Excellent Security Services and ECDC officials — including Siyaviya Mazwai, Luzuko Maneli and Ayabonga Konzani — reflects ongoing attempts by the company to secure payment since early 2026. The communication shows repeated requests for clarity on outstanding invoices and payment timelines, with limited substantive response.
In several of the exchanges, the company warned that the continued delay in payments was placing significant strain on its operations, including the ability to meet salary obligations and sustain service delivery at the contracted sites. The firm argues that the situation has created uncertainty for staff and threatens the stability of its business operations.
Excellent Security Services has criticised ECDC for what it describes as a lack of communication, accountability and urgency in addressing the matter, saying the conduct falls short of what is expected from a public entity mandated to promote economic development and support enterprise growth.
With the dispute unresolved, the company has now indicated that it is left with little choice but to pursue legal recourse in order to recover the outstanding funds.
“After exhausting all available avenues, we now consider legal action as the only remaining option,” George said, adding that the company still hopes for an amicable resolution but cannot allow the matter to continue indefinitely without payment or meaningful engagement.
The dispute underscores a wider and persistent challenge facing small and medium enterprises in South Africa, particularly those contracted by government institutions, where delayed payments continue to undermine cash flow and operational stability.
Under the Public Finance Management Act (PFMA) and the Municipal Finance Management Act (MFMA), state institutions are required to settle valid invoices within 30 days of receipt. Non-compliance may constitute irregular or wasteful expenditure, and accounting officers can be held personally liable in cases of financial misconduct or negligence.
In this instance, invoices dating back to August 2025 remain outstanding well beyond the legally mandated timeframe, raising concerns about adherence to financial management regulations and internal payment controls within the entity.
ECDC was approached for comment earlier this year. senior Mananger Luzuko Maneli acknowledged receipt of the media inquiry at the time and indicated that it would be escalated internally for attention. However, no substantive response has been provided since then.
As the matter remains unresolved, Excellent Security Services says it is seeking intervention to recover what it is owed and restore financial stability to its operations.
The outcome of the dispute is expected to draw wider attention, particularly as it highlights ongoing concerns around procurement practices, payment delays and the financial pressures faced by service providers operating within the public sector supply chain.
