Matatiele municipality, which falls under the Alfred Nzo District Municipality and serves the communities of Matatiele, Cedarville and Maluti, is owed R2 085 934.95 by Taylor Bequest Hospital in Matatiele, one of 14 health facilities that are behind with payments.
Eastern Cape Health Department spokesperson Mkhululi Ndamase said in total, they all owe a combined R27.1m for services rendered – but that they were committed to servicing the debts.
However, reports City Press, the department started this financial year with payables and accruals of R4.6bn, mainly caused by the settlement of unbudgeted medico-legal claims.
The R4.6bn n accruals covered:
• 2011 medico-legal costs;
• 2017 medico-legal costs;
• 2018 implants and State Attorney court costs;
• 2019 implants, medico-legal and State Attorney court costs;
• 2020 implants, medico-legal and State Attorney court costs; and
• 2021 implants, medico-legal, State Attorney, National Health Laboratory Service, SA National Blood Service, municipality and State Information Technology Agency costs.
A payment plan linked to budget availability is in place to gradually settle municipal debts.
Wonga Potwana, DA councillor and deputy provincial chairperson, said they had been putting motions to the Matatiele municipal council about government departments that owed the municipality about R71m.
He said the Alfred Ndzo district owed R13m, the Eastern Cape Department of Public Works owed R31m and the hospital owed more than R2.8m.
“We are a rural municipality and without collecting this money, we will struggle to maintain our infrastructure,” Potwana said.
Matatiele spokesperson Luncedo Walaza said the hospital was billed on a monthly basis for electricity. It had entered into an agreement with the municipality to pay this off – it last paid in May 2022
Walaza said that because the hospital was a health institution, the municipality could not fail to provide it with electricity.
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