POLITICS

68% of supplier companies paid on time - Gauteng DoH

Dept says that as of Sept 30 1009 companies were owed R421m for more than 30 days (Oct 28)

Gauteng Health is committed to paying service providers

28 Oct 2013

A total of 68% of companies providing services to the Gauteng Department of Health were paid within 30 days from receipt of an invoice as at 30 September 2013.

This was achieved as part of the Department's Turnaround Strategy 2012-2014 which aims to improve the delivery of healthcare in the province.

To ensure that more companies are paid within 30 days of receiving invoice, Gauteng Health MEC, Hope Papo said, "We have recently established the Health Processing Centre where the Procure to Pay process will be streamlined."

Payments that the department has processed and paid in the past couple of months have assisted in improving services in provincial health facilities.

The MEC added that invoices that are dated 31 March 2013 and older are subject to a prepayment audit.

"The total approved accrual payments will be presented to Gauteng Provincial Government for a decision on paying prior year invoices," he said.

As at 30 September 2013,1009 companies were owed R420 932 066.63 for more than 30 days.

Of these, 592 companies were owed R179 276 846.47 for more than 90 days and 498 companies were owed R105 million for more than 180 days.

This delay in supplier payments was caused by the accruals of the prior financial years.

Also, the prepayment audit process that the department embarked on to ensure that it pays legitimate transactions is taking longer than anticipated.

During 2010/11 and 2012/13 financial years, no service provider had their contracts terminated for poor or inadequate performance by the Department or its agencies.

The department would like to re-assure suppliers and services providers that it is committed to meet all its past and future obligations.

Statement issued by Simon Zwane, Gauteng Health, October 30 2013

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