The Gauteng Health Department owes R225 million to municipalities, blaming money shortages, invoice problems, and the lack of Service Level Agreements (SLAs).
This shockingly high amount is revealed by Gauteng Health and Wellness MEC Nomantu Nkomo-Ralehoko in a written reply to my questions in the Gauteng Legislature.
The largest amount owing is R160 million to Emfuleni Municipality for Cost of Employment and Goods and Services, as well as R14.9 million to the Midvaal Council. The department says this is because of the “unavailability of active Service Level Agreements” with the two municipalities.
Johannesburg Council is owed R21.6 million for water, waste removal and electricity. This is blamed on late submission of invoices by the council.
Ekurhuleni is owed R17.84 million for services, including R5.7 million by the Far East Rand Hospital, R5.4 million by Pholosong Hospital, and R4 million by Tambo Memorial Hospital due to “cash flow challenges”.
A total of R5 million is owed to West Rand municipalities, and R6.11 million to the City of Tshwane.
The councils claim that the amounts owing is far higher, so these disputes also need to be resolved speedily.
The DA in Gauteng will continue to push for strict financial management to ensure all suppliers are paid in good time, preferably within 15 days as happens in the DA-run Western Cape.