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.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts

Jobs in Cape Town [change area]

Jobs in Western Cape region

Graphic Designer

Cape Town Northern Suburbs
Creative Sourcing
R7 000 - R9 000 Per Month

Junior Chef

Century City
Pro Placements Recruitment Agency
R8 000 - R9 000 Per Month

CSR Inbound

Cape Town Northern Suburbs
O'Brien Recruitment
R14 000 - R16 000 Per Month

Property [change area]

There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.