Gauteng health to repay R1.5bn debt

2012-04-13 21:21

Johannesburg - The Gauteng health department will be paying R1.5bn over the next week to clear debts owed to service providers, an official said on Friday.

SpokespersonSimon Zwane said this was the second phase of debt-clearing. "In the first phase of the payment cycle, the department focused on all debts owed until March 2011."

Next in line was repayment of debts owed from April 2011 to the end of March 2012. Service providers waiting for money included security companies, non-governmental organisations, municipalities, medical waste removal companies and suppliers of coal and fuel.

Debts under R100m would be settled by May. Suppliers owed over R100m would be paid by June.

According to a statement R11.1bn had already been paid to suppliers since April last year.

"The department would like to reiterate its commitment to honour all its past and future obligations to service providers," Zwane said.

  • Ben - 2012-04-13 21:30

    Accounts not being paid in time puts a brake on the economy. The authorities should set an example as they receive their income on time.

  • Hein - 2012-04-13 21:32

    This is simply shocking... Imagine the stress that these suppliers had to go through, waiting for such amounts. It is simply heartless to treat your suppliers in such a manner, especially if you are the government (provincial government) who has access to the funds but for whatever reasons, be it bureaucratic bunglings of sheer arrogance, simply chose to not pay their suppliers. Another case of heartless, arrogant, incompetent politicians and government officials...

  • Tony Lapson - 2012-04-13 21:36

    Took long enough.

  • Muhammed - 2012-04-13 21:58

    The department ought to investigate why they were in debt and implement policies that will prevent a recurrence of this in future. It is simply unacceptable that service providers are not paid promptly and that patients are tragically at the receiving end. If government is serious about redress they should hold officials responsible for their inefficiencies and get competent replacements.

      Niel - 2012-04-13 22:21

      Billions went missing 3 or 4 years ago from this same dept! I think they are still recovering from that one - if my memory serves me correct - R 5 or 6 billion! Wonder how much actually gone missing since then...!!!!

      Muhammed - 2012-04-13 22:53

      Lol- I work for the department. I see it each and everyday!!! And yeah, whistle-blowing comes at a price. We need transparency, proper records and accountability.

  • Lacrimose - 2012-04-13 22:00

    R15BILLION on the books. In real terms - cost to the economy - closer to R45BILLION. The patient deaths, job losses, forfeited homes, discontinued health-care, pension payments, personal and household insurance, education, personal & company debt, wrangling into the future with SARS and liquidators - Priceless. As usual the govt closes the stable door long after the horse has bolted. This should not be announced with pride but with great shame. The cost to the country, to people's lives - that's the real accounting to ask for

      Muhammed - 2012-04-13 22:03

      Exactly the point and well said. We should demand for accountability. They should bow their heads in shame instead of boasting about this.

  • aiazmir - 2012-04-13 22:01

    Not only is the government taxing us to death, they are not paying their creditors. Where they hell us the money going to?

      Muhammed - 2012-04-13 22:05

      Financial mismanagement and corruption is going to cripple this country.

      Sharon - 2012-04-13 22:12

      Muhammed, why is it that you can see it, I can see it, the Zim that works for me can see it but not these idiots that run this country? Am I missing something or is this a race issue?

      Muhammed - 2012-04-13 22:41

      @ Sharon: I don't think it is a race issue but I believe it is sheer incompetence and poor financial IQ muddled with poor financial records and impunity. These people who steal from government have no idea of the long term damage of their actions. Money flow is exhaustible and the day we run out of it I sure well want to be long out of this country, (sadly so).

      pws69 - 2012-04-14 07:15

      Ask the cadres who can build R30 million houses on a policemans salary (Mpisani)

      Muhammed - 2012-04-14 10:04

      Haha! I know of a clerk who owns three BEE companies - all registered under her name. So when we wish to purchase an item and obtain three quotations - either way she goes laughing to the bank!!!!! Corruption is so deeply ingrained in South Africa and eveyone is aware of it, yet nothing is being done!!!! Where to from here?

  • Sharon - 2012-04-13 22:10

    Now just a simple question: are they also blacklisted at ITC as bad payers? Are they also not going to get credit at banks?

      pws69 - 2012-04-14 07:16

      I've actually checked this up. ITC refuse to blacklist any government departments.

  • Boy Bana - 2012-04-13 22:31

    i wonder how these companies survive without being paid????

  • Melania - 2012-04-13 22:40

    So glad they are following the western cape's lead. Hope this type of behaviour stays and doesn't just dissapear like all the othe promises made by gov. The people need good medical facilities. They were promised that and a lot more.

  • Tsietsi - 2012-04-13 23:02

    They are using money for this new financial year to pay for debts incurred in the previous one. The vicious cycle will continue.

      Muhammed - 2012-04-13 23:16

      So true.

  • pws69 - 2012-04-14 07:14

    How many companies shut down because these incompetent tools refused to pay them? I know of a company in Polokwane that supplied Office Furniture to government and were not paid. SARS shut them down for not paying VAT. When it was point out that they could only pay VAT once the GOVERNMENT had paid them, SARS told them they don't care. What a bunch of incompentent chops. Which leads to the question, what kind of a chop must you be to vote ANC?

  • Zahir - 2012-04-14 10:57

    Rule is Never do business with govt depts and if u must get cash first

      Muhammed - 2012-04-14 14:38

      I wonder if they can have a policy: Cash on Delivery for government...

  • Andrew - 2012-04-14 11:52

    Wow, using their suppliers as a bank, just think how much they saved in not paying overdraft fees, while the service provider goes out of business.

  • paul.prinsloo3 - 2012-04-14 12:30

    Incompetent nincompoops, do you realise how your inadequacy have adversely affected those service providers who had to either close their doors, or borrow money from banks at exorbitant expenses to them when it becomes a matter of delayed payment on those debts with interest just soaring? Government - Zuma - (sanctimoniously request foreign investors to trust government and to help with job createation, but government's agencies destroy jobs in this manner at a rate that just could not be caught up again. Wish we had a proper government!

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