Gauteng’s contingent liabilities rocket up to R18.5 billion

12 December 2016

The Gauteng Provincial Government (GPG) has incurred R18.5 billion in contingent liabilities for the 2015/16 financial year.

Of this R18.5 billion, R16.5 billion was incurred by the Department of Health alone.

It is particularly concerning that the Department of Health is the main driver of these liabilities, as quality healthcare should not be compromised under any circumstance. However, under the leadership of MEC Qedani Mahlangu the Gauteng Department of Health is a repeat offender.

(Click here to access the 2015/16 GPG consolidated financial statements.)

Contingent liabilities are incurred when departments are either sued by suppliers for the failure to adhere to the terms of contracts, or are taken to court by residents due to negligence or a failure to provide services government is constitutionally bound to deliver.

Other departments that incurred massive contingent liabilities in the 2015/16 financial year were:

- Department of Roads and Transport: R1.3 billion;
- Department of Infrastructure Development: R202 million; and
- Department of Human Settlements: R176 million

The year-on-year increase of18.6% in contingent liabilities points to a government that is failing to deliver on its mandate.

These findings underscore the fact that this is not an administration of the people, nor is it the caring government that it purports to be.

The DA will continue to scrutinise the finances of the GPG and hold the executive to account.

Issued by Mike Moriarty, DA Chief Whip: Gauteng Provincial Legislature, 12 December 2016