Gauteng health paying suppliers

2012-01-24 21:56

Johannesburg - Over R200m will be paid to hospital suppliers this month in a bid to clear debts incurred over the years, the Gauteng health department said on Monday.

The R202m allocation for this month follows the R600m paid out in December, said 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 R2.2bn in irregular expenditure for 2010/2011.

Earlier this month, the SA Medical Device Industry Association (Samed) said medical suppliers were owed R403.8m by the department.

Zwane said a meeting was held with Samed on Tuesday morning. A follow-up meeting was scheduled for Thursday.

"Up to November 2011, an amount of R108m has been paid to members of Samed," he said.

In an effort to reduce accruals, a team has been set up, comprising 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 this year.

  • Ludwig - 2012-01-24 22:06

    Pay them then we will believe you!!!

  • Koekies - 2012-01-24 22:11

    We thank you for paying your taxes :-)

  • Heinrich - 2012-01-24 22:44

    Expect extreme weather.

  • Maximus Odinidus - 2012-01-24 22:49

    Apparently the allocated R200m won't even make a dent in the total amount owed to suppliers. It's a start I guess.

  • Kim - 2012-01-25 00:37

    Once again it is the poor who suffers with inadequate treatment due to no supplies. So just keep on voting for the non corrupt party, the ANC.

  • Michael - 2012-01-25 03:09

      Heinrich - 2012-01-25 06:00

      Thanks Michael.

  • Sharon - 2012-01-25 07:49

    Another bailout for the ANC led municipality............

  • Patsy - 2012-01-25 09:42

    Anyone who deals with a government body should obviously get their money up front. The amount owing is unreal and unacceptable. Have they no shame?

  • ludlowdj - 2012-01-25 10:06

    Good work, however The ANC government does not have a good track record and most suppliers will be very hesitant to incur further debt on a promise that isn't worth anything. The popular "no pay no supply" policy must of course apply until such time as government gets its act together and meets all of its obligations, only a fool believes government acts in the interest of its people or the betterment of anything other than its own earning potential.

  • Heinrich - 2012-01-25 11:47

    The ANC government will never let its suppliers down. This particular case is just a small isolated incident. As proof of my assertion I remind readers that a contract worth about R350m was recently awarded to s supplier in Limp paw paw to supply school text books. Even before any books were supplied, the ANC government already paid R20m to the supplier, without any conditions attached. I am confident that they will pay the rest of the R350m to the supplier, even if no books were ever supplied.

      Jean-Pierre - 2012-01-25 12:17

      don#t you mean especially if no books are supplied

  • Claude - 2012-01-25 15:48

    And what about the money owed to NHLS, they also face closure of some labs

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