A Mthatha-based construction council has questioned a recent statement made by Eastern Cape Development Corporation (ECDC) chief executive that failing contractors were "biting" the corporations pockets.

ECDC head Mxolisi Matshamba said that 60% of the organisation's loans to small contractors had to be written off in the past financial year.

He said this was due to bad financial planning and tendering.

The Eastern Cape Construction Council's Nelson Mavume responded by saying it was not aware that any of its members had to close shop due to non-performing loans. "Maybe the ECDC needs to be reminded that black contractors do not owe their existence to it and its finances.

"It is unfortunate that ECDC can formulate a negative and reactionary opinion that black contractors lack financial planning, underquote and rush to buy luxury vehicles once they have clinched a contract," Mavume said.

The council challenged Matshamba to prove who the contractors were that failed in their contracts.