The Department of Health and Social Development has noted with concern a report in today's edition of The Star headlined "Crisis looms as hospitals default on bills".
The department would like to assure patients and members of the public that none of our hospitals are "on the brink of tragedy" as alleged by the newspaper.
The report is inaccurate and based on allegations of a single individual whose claims for payment are under investigation.
The department has been processing payments of more or less R286 million a week to service providers since April. So far R2.2 billion has been paid.
We however would like to state that payment to Mr Paul Gerber, the source upon which The Star based its story, has been suspended. The reasons for suspending payment to Mr Gerber Yolmel Medical Services are as follows:
* Mr Gerber has not been able to produce a contract authorising him and his company to repair medical equipment for the hospital
* Initial investigations by the hospital have revealed that proper procurement procedures were not adhered to in the transactions that Mr Gerber is claiming payment for
* It has also been established that some of the equipment supposedly repaired by Mr Gerber was condemned in the same month it was meant to have been repaired
* In certain instances, equipment supposedly repaired is not known by end users
* In other instances equipment sent for repairs has never returned to the hospital
* The Yolmel has claimed to be the sole agent authorised to repair and maintain certain equipment but could not provide the necessary documents to substantiate this claim.
The department has a duty and responsibility to ensure all transactions it pays for are legitimate and in accordance with applicable procurement procedures.
Payment to Mr Gerber will remain suspended until all outstanding questions have been satisfactorily resolved.
Enquiries:
Simon Zwane
Cell: 082 551 9892.
Issued by: Department of Health and Social Development, Gauteng Provincial Government
9 June 2010
