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DA: Jack Bloom says Gauteng Health owes R3.7 billion to 1576 suppliers

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DA: Jack Bloom says Gauteng Health owes R3.7 billion to 1576 suppliers

DA: Jack Bloom says Gauteng Health owes R3.7 billion to 1576 suppliers
Photo by Bloomberg

15th November 2017

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/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The Gauteng Health Department owes R3.7 billion to 1576 suppliers who have not been paid for more than 90 days.

This distressing information was revealed by Gauteng Health MEC Gwen Ramokgopa in an oral reply to my questions yesterday at a sitting of the Gauteng Legislature.

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She also said that "service delivery and patient care will be affected" as a consequence of companies stopping goods or services because of non-payment.

Services were stopped by E-Goli gas but this was resolved speedily. Other suppliers who have stopped services include the following:

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  • Gugu and Daughters
  • Techno-Med
  • Government Printing Works
  • Barford Jones
  • Ditaro
  • Dr Temp
  • Supra Healthcare
  • Sidas Security Services

The Department is making slow progress in bringing down its accruals which were R4.7 billion at the start of the financial year on 1 April, and is now R1 billion less but still an enormous amount which is nearly 10% of the Department's R40 billion budget.

Yesterday I witnessed the Sheriff of the court taking out furniture from the Department's head office in central Johannesburg because of a non-payment issue.

This is happening quite regularly as desperate companies or law firms have to resort to the court to force payments, including those for medical negligence.

National Treasury has turned down the Department's appeal for more funds, so the future looks bleak.

The only hope is that Finance MEC Barbara Creecy allocates more funds to health in the adjustment budget due to be tabled tomorrow.

I fear that patients lives will be put at risk in another Esidimeni as unpaid companies stop goods and services to hospitals.

 

Issued by DA

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