News24

Gauteng health dept settles debt

2012-07-08 13:55

Johannesburg - The Gauteng health department has met a deadline to pay off its multi-billion rand debt to suppliers, MEC Ntombi Mekgwe said on Sunday.

"The department faced tremendous pressure in the 2011/2012 financial year to settle supplier debt... [it] devised a payment plan which stipulated that it would use the resources to pay off all suppliers by the end of June this year," she told reporters in Johannesburg.

"A total of R4.4bn was therefore paid from April to June this year, and we can now say that the deadline of settling accrual by June 30 has been achieved."

Mekgwe said the department had paid its debts up to March this year. Subsequent payments would be made monthly.

"We have put in place a plan to avoid a recurrence of the accruals and cash flow challenges that we experienced.

"Our plan includes achieving a cost saving of R1.6bn through cost containment measures."

The department had also developed a Gauteng health turnaround strategy to highlight and rectify shortcomings in the sector. It would focus on reviewing all existing contracts and tenders, address fraud and corruption, and establish an office for ethics and discipline in the department.

To improve ambulance response times, a chief executive would be appointed to manage emergency services.

"Where medical negligence is confirmed we will endeavour to avoid protracted court battles by entering into appropriate settlement negotiations with affected parties," Mekgwe said.

Comments
  • Ian - 2012-07-08 14:24

    more like phishing for votes

  • Thebigguyjim - 2012-07-08 14:34

    They paid their debt to suppliers, ho hum.... this is not news any where else. This is what educated people do, they PLAN, BUDGET,and PAY on time for services rendered, this is how a economy works.

  • judith.taylor.56 - 2012-07-08 14:36

    So they've paid up to March and will now settle monthly. By my calculations, they are over three months behind again. Has anyone got grade 5 maths in the department?

      scouter.fourone - 2012-07-08 15:03

      No - clearly not whereas I think your calcs are spot on, Judith. The ANC government seems to think that it is a God given privelige to have 'them' on your books - definitely not, methinks!

  • Comfido Nziyane - 2012-07-08 16:31

    So where did they get the money to settle their debt?

      scouter.fourone - 2012-07-08 17:24

      Contingency Account Number 'who knows what' ...... that is a wild guess - and pure speculation on my part, Comfido.

  • Lacrimose - 2012-07-08 18:42

    Oh yay. Many of those suppliers have in the meantime had to lay off workers and/or close their businesses. Resulting in more unemployment, indebtedness, no funds for children's education, re-possessed houses & cars, black-listings and negative credit records. We ALL pay for that.

  • Shilly Maelane - 2012-07-08 19:30

    Uhhhhh - so when is the MRI at Ga-Rankuwa going to be fixed??? It's been 12+ months...

  • sandy.langenstrass - 2012-07-10 17:10

    Soweta News reports that the Health Department have only paid some of their debt.This anc government must really now begin to see to it that only credible, and qualified people should be employed to do work in this respect. You can not go for years not paying people....the results is they will no longer supply you...and in the end Hospitals will be in a very bad situation...as if they aren't already.

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