The Gauteng Department of Health (GDoH) has noted the public announcement made by City Power regarding the outstanding electricity bill owed across several facilities and the threats of disconnection.
The Department would like to state upfront that we acknowledge the importance of settling financial obligations promptly to ensure the uninterrupted provision of services by municipalities which have a direct impact on the rendering of healthcare services to the public, especially given that our facilities depend on access to sustainable supply of electricity and water for their operations.
However, the GDoH has an obligation like any consumer of municipal services to ensure that when there are discrepancies in the billing owing to one reason to another, these get verified before any payment can be processed.
The department would therefore like to set the record straight as follows in relation to various facilities cited by the City of Johannesburg (CoJ)’s electricity utility, City Power:
- Charlotte Maxeke Johannesburg Academic Hospital – Six invoices amounting to a total of R32,474,056.39 have been paid to CoJ from April to September 2023 towards the settlement of the R40m debt. An additional invoice of R4.9m has been finalised for payment this week, and the last invoice of R5.2m is currently being processed for a purchase order to be created before the money is released. These amounts excluded interest raised as the Department is of the view that the interest has been raised even on invoices that have long been settled leading to incorrect amounts being claimed.
- Helen Joseph Hospital – All invoices received totalling a principal debt of R13m have been paid fully and received by CoJ between 07 August and 23 November 2023. It would appear that the amounts received by the CoJ were not yet allocated to relevant invoices and accounts on time; so they can also reflect on City Power’s records which highlights some of the challenges that lead to the incorrect reflection of actual amounts owed to the CoJ, and discrepancies between the parties.
- Rahima Moosa Mother and Child Hospital (formerly known as Coronation Hospital) – The R4m debt was paid in three invoices dated 19 and 26 October 2023, which has been received by CoJ. Similarly, these payments have not been updated on City Power's record, causing a misleading representation of the situation.
- South Rand Hospital – The GDoH has received an invoice of R2,086,080.30 from the City of Johannesburg, which was way above the normal charges that would be received, this delayed the processing thereof pending clarity. This amount is now due to be processed and paid with the current pay run. There is an amount of R625 807.84, which is being processed for the creation of a purchase order to effect payment.
- Chris Hani Baragwanath Academic Hospital – the debt of R2.6m owed to CoJ is current and an invoice was received in November 2023 which is currently being processed for the creation of a purchase order to effect payment.
- Nelson Mandela Children’s Hospital (NMCH) – City Power incorrectly attributed a debt of R47m in its announcement to NMCH instead of Transvaal Memorial Institute (TMI) which used to house the erstwhile children memorial hospital (TMI). The Institute houses a number of NGOs that are not related to GDoH except for the laundry services and a boiler house (servicing Charlotte Maxeke hospital) which are in the same yard as the TMI, but in a different building. There is unfortunately one electricity meter for which GDoH cannot be fully responsible. This is a matter that requires further engagement on, in terms of who is responsible for what.
The GDoH wishes to state that the amounts that have already been paid to CoJ from April 2023 to November 2023 continue to incur interests on the City of Johannesburg records, something which GDoH disputes. It is important that this issue is resolved to ensure continued collaboration in an effort to maintain the delivery of services to the people of Gauteng.
The department remains commitment to cooperate with local authorities across the province and utilities to ensure sustained delivery of services and will continue to engage affected stakeholders and exchange records in an effort to ensure that no debt goes unsettled.
Enquiries:
Motalatale Modiba
Head of Communication
Cell: 064 803 0808
E-mail: healthmediaenquiries@gauteng.gov.za
Tshepo Shawa
Spokesperson for the MEC for Health
Cell: 072 222 6333
E-mail: Tshepo.Shawa@gauteng.gov.za
