The Gauteng Department of Health and Social Development has paid service providers more than R700 million in line with the commitment to ensure the provision of quality health care to the people of Gauteng.
The total amount that was disbursed by Friday, 10 February 2012 for urgent payments amounts to R736 million. The remaining balance will be used to redeem the outstanding debts and current supplies of service within the department before the end of the financial year.
A total of R386 million was paid for medical supplies, while R150 million was paid to National Health Laboratory Services (NHLS) and a further R50 million was paid to South African National Blood Services (SANBS).
The Gauteng Provincial Government has identified a potential R1 billion in cash to pay for service providers in the Gauteng health department. This will culminate to a total amount R 1.6 billion to be paid by the end of 31 March 2012.
A payment plan has been developed and will form the basis for engagement with all affected suppliers, whilst the verification process of invoices is on-going.
In order for service providers to continue supplying medicine, the following has been implemented: The payment run for suppliers of essential medicine was processed yesterday and this includes the payment to NHLS and SANBS.
In the coming week, the Gauteng Provincial team will initiate a process of negotiating with individual service providers around the payment plans towards redeeming debt owed to suppliers.
Through these initiatives, it is evident that the Department is committed in addressing the challenges it faces in the slow payment of service providers and is also determined to use all resources at its disposal in addressing by this June 2012.
We would like to reiterate that the department is fully aware and committed to meeting all its past and future obligations to its suppliers.
Enquiries:
Simon Zwane
Cell: 082 551 9892
Department has paid suppliers more than R700m
Province
