The Gauteng Department of Health is in hot water again, this time after a summons by the provincial Health Portfolio Committee to explain why it hadn’t paid invoices in the first quarter of the 2024/25 financial year.
Health MEC Nomantu Nkomo-Ralehoko will have to appear in front of the committee to account for her department’s delinquency in paying 19 212 involces totalling R1bn within the stipulated 30 days.
The summons comes after Public Service Commissioner Vusumzi Mavuso revealed the “lapse” during a Health Portfolio Committee meeting last week, reports Health-e News.
“This is on top of 71% of invoices received by the Gauteng Department of Finance from the provincial Health Department that were not paid by the end of the fourth quarter of the 2023/2024 financial year,” said DA Gauteng health spokesperson Madeleine Hicklin.
According to the National Treasury, all government departments should ensure invoices are paid within 30 days. Officials responsible for the late or non-payment of invoices are committing financial misconduct.
Gauteng Health is notorious for non-payment of suppliers.
Earlier this year Health-e News reported that surgery was halted at Leratong Regional Hospital, west of Johannesburg, leaving more than 500 patients waiting months for operations – just because a disgruntled supplier had not received payment for upgrading air conditioning units.
In April last year, it was reported that the department owed R4bn to more than 42 000 suppliers.
Department commits to improve payment
The department’s head of communication, Motalatale Modiba, could not tell Health-e News which suppliers’ payments were delayed, but said measures had recently been put in place to improve payments within 30 days, “and to reduce the number of invoices that remain unpaid”.
Reconciliation and verification of all payments was now done monthly to clear any backlogs, he added, and no procurement was allowed outside the procurement plan and budget.
“Verification of work is conducted before any invoice payments. CEOs of health facilities have to take full responsibility for oversight in the process as they are the accounting officers.”
Modiba said the department was implementing a 70:30 split of its monthly budget for payment of invoices, where 70% will be prioritised to be paid to suppliers whose invoices have been processed within 30 days: 30% of the budget will be prioritised for suppliers who submit their invoices outside 30 days.
See more from MedicalBrief archives:
Gauteng Health owes thousands of suppliers R4bn
Gauteng Health worst for non-payment of creditors
Slow-payer Gauteng Health owes R1.2bn to over 800 companies