Jacques Smalle MP
DA Limpopo Provincial Leader
More than 600 people will be jobless this month due to the Health Department ’s failure to pay service providers on time.
Service providers and contractors that have rendered services (Click here) in various hospitals across the province are now forced to retrench people. Government’s failure to pay its bills on time is pushing these service providers out of business; and in turn they now need to retrench employees.
The Department owes contactors and service providers more than R8 million (click). Contractors have confirmed to the DA that they are now contemplating legal action to force payment.
It’s clear that Limpopo’s financial administration is still a mess. The intervention by national government has not made all the problems go away. Since the five Limpopo departments were placed under administration, the payments schedule has not been followed.
The Health department is now also facing an expensive court litigation as a result of not paying its bills.
The failure to pay bills on time will therefore not only put people out of work in Limpopo, but will result in fruitless and wasteful expenditure when various penalty clauses kick in due to late payments.
The DA will be submitting written questions to the Premier Stanley Mathabatha as well as the National Treasury to get a meticulous explanation why payment is still being delayed and why no one has been hold accountable for this failure. All outstanding payments to creditors have to be paid as the law requires with seven days.