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Gauteng health set to kill millions in old debt

By Sapa | Jan 25, 2012 | COMMENTS [ 23 ]

MORE than R200-million will be paid to hospital suppliers this month in a bid to clear debts incurred over the years, the Gauteng health department said yesterday.

The R202-million allocation for this month follows the R600-million paid out in December, spokesman Simon Zwane said.

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.

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 2010-2011.

Earlier this month, the SA Medical Device Industry Association said medical suppliers were owed R403.8-million by the department.

Zwane said a meeting was held with Samed yesterday. A follow-up meeting was scheduled for tomorrow.

"Up to November 2011 an amount of R108-million had been paid to Samed members," 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.

COMMENTS [ 23 ]

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But how did things get to be this worse I mean R2.2Billions in the red, did anyone not see this was going to happen what kind of brains do we have in the public sector.

Jan 25, 2012 6:57 | 0 replies

Its worthless trying to put fire in a room while the place where fire started is still burning. Get rid of the manual system then u would be able to record accruals in an electronic financial system.

Jan 25, 2012 9:0 | 0 replies

Jaja'sQueen

Why would you think I'd live in a place with such k@k weather?
I live in Pretoria - best city in the country

Jan 25, 2012 9:1 | 0 replies

Gauteng showed irregular expenditures of R4.2 billion.

Jan 25, 2012 9:16 | 0 replies

@MommaC
You right. Best city in the world.

Jan 25, 2012 9:35 | 0 replies

Jaja'sQueen - Most racist city in the world :P

Jan 25, 2012 9:57 | 0 replies

Sinudeity

LOL
Brought out the big stirring spoon today?
It isn't racist here at all ...... providing you don't consider Pta West and Pta North as being part of the city :)

Jan 25, 2012 10:16 | 0 replies

MommaC - Hehehehe.

Im stirring so much, I need a bodyguard nowadays apparently :P

Jan 25, 2012 10:19 | 0 replies

Call me stupid, but I cannot understand why the people who run these bankrupt departments (in all provinces, not just Gauteng) still have a job.
Does training come with the appointment or do they appoint qualified people? Obviously, neither.
How can they waste all this money by appointing anc pals and cadres, in a country like SA, which needs so much infrastructure? It boggles the mind.

Jan 25, 2012 10:38 | 0 replies

Morena: I don't think for a second that those in control were unaware of the problem. They just couldn't care less, knowing that National would have no choice bu to bail them out, as Health is a pretty crucial area gauranteed to get media attention and to get people's tempers raised.

Candi: Do you seriously think our current leadership give two hoots about the principles of the struggle? I definitely do not believe it at all.

Jan 25, 2012 10:39 | 0 replies

@candilious
This is just insane for people who claimed to have been in the struggle to do this unto its people
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Those who do not read History are doomed to repeat it!!!! Look at african states that were liberated before us, many of them are either recovering from being failed states or from civil wars, genocide; etc. South africa is not immune to all of this; sadly our voters believe that we are!!!! That is why even with so much incompetence, others will still argue for the perpetrators of the same. It's not only insane as you put it; but also very painful to those of us who are watching it unfold right before our eyes!!!!

Jan 25, 2012 8:37 | 0 replies