Today, the MEC for Health Dr Sibongiseni Dhlomo explained to journalists the bandied R1, 4 billion which is said to have been under spent by the KwaZulu-Natal (KZN) department when he presented his service delivery progress report to the KZN legislature.
The MEC addressed journalists and explained that the said 'under-expenditure' is as a result of misinterpreted financial reports that were presented to a portfolio committee of the legislature. Explaining how the total of R1,4 billion comes about he told journalists present that:
Infrastructure
A total of R323 034 million was ‘ring fenced’ by the national Department of Health after consultation with provinces and the Department of Public Works to allow for the completion of outstanding infrastructure projects. The national Department of Health will return the money to provinces once they present plans on how they would fast track the completion of projects. The money may also be used to build new nursing colleges and improve staff residences in various hospitals with in respective provinces where the money was taken from.
Compensation of employees
A total of R238 534 million has been set aside to pay back the outstanding Occupational Specific Dispensation (OSD) to categories that have not received and to also correct underpayments in some cases.
Goods and services
An amount of R220 573 million was saved following the implementation of stringent cost saving measures by the provincial government. Following the two successive over expenditures by the Department of Health, to the tune of about R2,6 billion provincial government adopted cost saving measures that were meant to save on what was later referred to as ‘frills’. These included cutting on hotel accommodation, vehicle hire, hotel conferencing, etc.
Capital
The department ordered ambulances, tuberculosis (TB) vehicles and machinery that were not delivered by the financial year end. These accounts could not be paid ahead of the delivery of good and/or services. In this regard the money, R413 110 million, was committed and Treasury has agreed to return it to the Department to pay for its commitments or accruals.
Comprehensive HIV and AIDS grant
The requested roll-over of R17 million for Comprehensive HIV and AIDS grant of R17 million was approved by the national.
Transfers to local government and non-governmental organisations (NGOs)
A total of about R18 119 million had not been transferred to local government and non-governmental organisations because the service level agreements between the department and these organisations had not been finalised by financial year end.
There are discussions around a R500 million which is to be paid to National Health Laboratory Services (NHLS) to clarify some of the claims.
The MEC also introduced the newly appointed Chief Financial Officer Mr Siphesihle Mkhize and assured the people of KwaZulu-Natal that there were no monies that would go unspent. “We have turned the corner as a department and all our plans are on track. We are also glad to announce that we have recovered over R1,7 million following our intensified fight against fraud and corruption. In the infrastructure component we have now appointed a qualified engineer, Mr Bongi Gcaba, to head the component and is now on track to ensure the implementation of all infrastructure projects as planned by the department,” MEC Dhlomo told the press briefing.
Enquiries:
Chris Maxon
Cell: 083 447 2869
