Gauteng health pays 1000 suppliers late

Jack Bloom MPL

DA Gauteng Health Spokesman

The Gauteng Health Department has failed to pay 68% of suppliers within the required 30 days, paying 1009 companies late as at September last year. These late payments totalled R421 million.

This is revealed in a written reply by Gauteng Health MEC Hope Papo to my questions in the Gauteng Legislature.

498 suppliers are owed a total of R105 million for more than 6 months.

This is really unacceptable. It shows that payment problems continue to hinder the provision of health services in Gauteng as many suppliers cut their services because they have not been paid.

Maintenance suffers, which is why a CT scanner at the Chris Hani Baragwanath Hospital has been broken for more than two months.

Large payments owing more than 6 months include the following (full list available on request):

SA Blood Transfusion Services                            R14.2 million

City of Johannesburg                                             R9.5 million

National Health laboratory Service                       R6.6 million

African Oxygen Ltd                                                  R4.2 million

Stryker South Africa                                                R4 million

Johnson & Johnson Medical                                R3.4 million

Synthes                                                                     R1.5 million

Philips Medical Systems                                        R1.49 million

Smith & Nephew                                                      R1.3 million

According to the Department, they have established a Health Processing Centre to streamline payments. Invoices that are dated 31 March 2013 and older are subject to a prepayment audit.

I am disappointed that despite many promises many companies are still owed huge amounts for a long time.

Payment backlogs must be cleared up as soon as possible, and all companies paid within 30 days.