Imminent cash crunch could cripple Gauteng health services

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.

The DA calls on Gauteng Health MEC Hope Papo 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.

A track-record of proper budgeting and effective service delivery are hallmarks of DA government.

Rooting out incompetence and addressing the lack of financial accountability will be one of the priorities of the DA-led provincial government in 2014.

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

Statement issued by Mike Moriarty MPL, DA Gauteng Finance Spokesperson, February 10 2013

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