Gauteng Health is the worst in the province when it comes to non-payment of suppliers, with 987 businesses owed a combined R1.9bn dating back to 2014. The Times reports that this was revealed in the legislature by Health MEC Bandile Masuku in reply to questions by Democratic Alliance (DA) MPL Jack Bloom.
Masuku said 236 businesses which provided services to the department two years ago were owed R1.3bn. In addition, R103m was due to 128 service providers for work done three years ago, and close to R300m was owed to more than 500 companies for services provided in 2018.
Masuku said in the report: “Historically, the Gauteng department of health had cash flow challenges as a result of cash which was not aligned with budget. This resulted in the department’s inability to pay some suppliers in full, and in being unable to comply with the PFMA requirement of payment of suppliers within 30 days.”
Masuku said the department was on a campaign to “clean” up this anomaly, which Bloom said was having devastating impact on the companies owed money.The Times report