Hundreds of unpaid medical suppliers in Gauteng

22 February 2023

Despite promises of payment within the legally required period of 30 days, the Gauteng Health Department owed an astounding amount of R1.856 billion to 940 suppliers as at 31 January this year. This is only a 40% payment level!

This information is revealed by Gauteng Health MEC Nomantu Nkomo Ralehoko in a written reply to my questions in the Gauteng Legislature.

Furthermore, 223 suppliers are owed R983 million for more than three months, and 176 suppliers are owed R35.5 million for more than six months.

The situation is so bad that some unpaid companies are refusing to supply essential equipment to hospitals.

The MEC blames the late payments on the settlement of accruals from previous years, and court/ordered medico-legal payments that are not planned and budgeted for.

It’s a key challenge for Premier Panyaza Lesufi who promised in his SOPA address that there would “stringent consequence management” for the failure to pay within 30 days.

His credibility is on the line if the Gauteng Health Department does not radically improve payments in the near future.

This will require the replacement of all the cadre deployment deadbeats with competent and honest people.

Issued by Jack Bloom, DA Gauteng Shadow Health MEC, 22 February 2023