Gauteng Health owes R7bn and cuts all capital spending
14 February 2018
The Gauteng Health Department has only R229 million in cash to pay for goods and services until the end of the financial year on 31 March, but the total amount owing to companies is expected to be between R6.5 and R7 billion.
This dire financial situation was revealed yesterday by Gauteng Health MEC Gwen Ramokgopa at a meeting of the Legislature’s Health Committee where she presented a report on the Third Quarter performance of her Department from October to December 2017.
Only 27% of suppliers are being paid within the required 30 days, and there are “ongoing discussions with Provincial Treasury to address the shortfall in funding taking into account the increased burden of disease.”
The only good financial news is that R365 million was collected in the quarter, which was above the target of R338 million because North West Province has starting paying for health services and there was improvised collection of revenue from the Road Accident Fund, Correctional Services and self-paying patients.