Gauteng health paying suppliers

2012-01-24 15:28

More than R200 million will be paid to hospital suppliers this month in a bid to clear debts incurred over the years.

The R202 million allocation for this month follows the R600 million paid out last month, said Gauteng health department spokesperson Simon Zwane.

The payments were managed through cash flow allocations the department received from the provincial treasury. National Treasury was helping the department sort out its budget.

“As the department, we are hopeful that through these initiatives, we will be able to bring relief to suppliers,” Zwane said.

“We would like to reiterate that the department is fully aware and committed to meeting all its past and future obligations to suppliers.”

The health department owes providers for services delivered as far back as 2007. Some were forced to shut down as a result.

In his report last week, Auditor-General Terence Nombembe found that the Gauteng department of health and social development had incurred R2.2 billion in irregular expenditure for 2010/11.

Earlier this month, the South African Medical Device Industry Association said medical suppliers were owed R403.8 million by the department.

Zwane said a meeting was held with the association earlier today. A follow-up meeting was scheduled for Thursday.

“Up to November 2011, an amount of R108 million has been paid to members of Samed (the association),” he said.

In an effort to reduce accruals, a team has been set up, comprising of officials from the provincial health and finance department.

Zwane said the issue of reducing accruals would be dealt with in phases.

The intention was to clear most accruals by the end of June.

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