Gauteng health dept owes suppliers R296m

2016-04-05 09:30


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Johannesburg - By the end of January, the Gauteng health department was in arrears of R296 million.

The money was owed to 509 companies, Health MEC Qedani Mahlangu said in a written reply to a question in the provincial legislature, the Democratic Alliance said.

The biggest debt was to Phillips SA at R35m, followed by the National Health Laboratory Service at R33.5m, and Iveco SA at R18.7m. 

Health department spokesperson Steve Mabona said the delays in payment were mainly because of late submission of invoices and suppliers delivering more than what was ordered, or charging incorrect amounts. 

Gauteng DA health spokesperson Jack Bloom said most of the suppliers were struggling small businesses. According to Mahlangu, only 56% of suppliers had been paid within the legally required 30-day period. Much of the debt was long-term, Bloom said. 

Mabona said Mahlangu met those suppliers last month who were not responsible for the delays. She apologised, pleaded for their continued support, and undertook to pay them.

Read more on:    johannesburg  |  health

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