Imminent cash crunch could cripple Gauteng health services

Mike Moriarty MPL

DA Gauteng Finance Spokesperson

A severe cash crunch starting this week could have a devastating impact on Gauteng public health services. The balance of the Gauteng Health Department (GDH) for ordinary goods and service suppliers for the remaining months of the financial year is “enough to carry the department for the month of January and part of February only”.

According to the province-wide Third Quarterly Report of the Gauteng Finance Department the GDH only has R905 million to pay for ordinary goods and service suppliers until March 2013 despite needing R650 million per month to fulfil its financial obligations.

The latest shortfall comes despite the mid-term upwards adjustment of the department’s budget by R2.67 billion. Gauteng Health MEC Hope Papo needs to explain the shortfall and urgently outline how he intends to ensure provincial health services continue uninterrupted.

The inability of the department to budget and spend its money effectively poses a severe threat to public health services in Gauteng and to the millions of people dependent on it.

The people of Gauteng cannot continue to carry the burden of incompetent and ineffective officials.

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