GAUTENG HEALTH RUNNING OUT OF MONEY

The Gauteng Health Department is running out of money to pay for goods and services, and will have to divert money from other projects and other departments to keep afloat until the end of the financial year on 31 March.

This dire projection is revealed in third quarter financial reports tabled in the Gauteng Legislature that cover the period October to December 2012.

According to the Gauteng Finance Department, the Gauteng Health Department (GHD) has only R905 million to pay for goods and service suppliers until March 2013 despite needing R650 million per month to fulfil its financial obligations. This is "enough to carry the department for the month of January and part of February only".

According to the third quarter report of the GHD, the department spent 84% of the goods and services budget as at 31 December 2012, which is way above the 75% that should have been spent at the end of the third quarter. This over-expenditure is attributed to the payment of accruals from the previous financial year.

The department is more than R1 billion short of what it needs for payments to suppliers by the end of the financial year.

This situation is very serious as I still get complaints from unpaid suppliers and many doctors have not been paid overtime.

Gauteng Health MEC Hope Papo needs to tells us what is being done to avert the looming cash crunch that could affect services at hospitals and clinics.

Statement issued by Jack Bloom MPL, DA Gauteng Health Spokesman, February 13 2013

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