The North West MEC for Health Dr Magome Masike announced to the Provincial Legislature that his Department has successfully cleared the R751m accruals which were reported in the last financial year. Speaking at the time of delivering the Department’s Budget Vote and Policy speech, MEC Masike said, “the good news is that the Department has successfully overcome the R751 million accruals which have been eating on our budget over the years”. He said that this was made possible by among others transaction accuracy systems introduced in the department and the co-management (interventions) with the Provincial Treasury. The Department also reported to have implemented enhanced financial accounting procedures which were introduced to avoid the re-occurrences of accruals in future.
The Legislature approved a Nine Billion Four Hundred and Sixty Million Five Hundred and Thirty Thousand (9 460 530) budget of the Department of Health for the financial year 2016/17. The Department is now in a position to do better with the allocated budget now that the accruals which have been a thorn in the flesh of health service delivery have been cleared.
Speaking in reaction to the Department’s Budget vote, the Chairperson for the Porfolio Committee on Health and Social Development Nono Maloyi said, “the Portfolio Committee is pleased that the Department has cleared the accruals which means there will be enough budget to address health service delivery issues particularly maintenance of health facilities identified by the Portfolio Committee during the recent visits”.
Health MEC, Dr Magome Masike believes the success is due to the fact that the Department implemented a turnaround strategy and a cost saving exercise which included a number of initiatives. “We substantially reduced the high rental costs by sharing office space. Ngaka Modiri Molema District is now sharing space with the Provincial Office in the new Office Park. Similarly in other districts we created office space in some of our health facilities to accommodate more staff and safe on rentals. The Tirelo Building Office lease is also now officially behind us. We have plans to accommodate Mahikeng Sub district in the offices currently occupied by Bophelong Psychiatric Hospital once we move to the new hospital. We will continue to look at opportunities of creating more office space within our facilities and make savings in rentals even in the new financial year”, said MEC Masike.
The Department promised to also continue to implement measures to prevent unauthorized expenditure and a 30 day after invoice payment system, except in those projects or services were there are queries of service provisions.
Issued by:
Tebogo Lekgethwane
Cell: 0829299958
Email: tlekgethwane@nwpg.gov.za
