POLITICS

Gauteng Health Dept still paying companies late – Jack Bloom

DA says small companies are struggling and may have to lay off workers due to lack of payment

Gauteng Health Department still paying companies late

19 January 2017

The Gauteng Health Department is failing to deliver on its promise to improve payments to companies which are supposed to be paid within 30 days.

I have been contacted by many companies desperate for payment that is outstanding for long periods of time.

Small companies are struggling because of the lack of payment and may have to lay off workers.

It seems that the department has cash flow problems because of large pay-outs for medical negligence and also because money is running out towards the end of the financial year on 31 March.

This distressing situation makes a mockery of Premier David Makhura's promise that all companies will be paid in the legally required 30 days.

Forceful intervention is needed to fix the continuing poor financial management in the Gauteng Health Department.

Issued by Jack Bloom, DA Gauteng Shadow MEC for Health, 19 January 2017