The Gauteng Health Department is owed a combined R1.5 billion by government departments, State-owned entities (SOEs) and other provinces.
This was revealed by the Premier of Gauteng, David Makhura who was responding to a question by DA Chief Whip in the legislature, Mike Moriarty.
Moriarty asked the premier about the status of the recovery of hundreds of millions of rand owed to the Gauteng Provincial Government, including the health department, by a range of government departments. The premier highlighted that efforts to recover monies owed to the province were at an advanced stage. He said he had petitioned the Minister of Health, Dr Aaron Motsoaledi and the Finance Minister, Pravin Gordhan to solicit their assistance in making sure that all monies owed to Gauteng were settled.
Makhura added that he was deeply concerned, as the debts could affect service delivery in public health institutions in the province. “The debt owed to Gauteng health is too huge and it undermines the department’s ability to deliver quality service,” he said.
According to the premier, the provincial health departments of North West, Limpopo, Mpumalanga and Free State are among those that owe his government, as seven hospitals in Gauteng were rendering tertiary services. Some patients from the mentioned provinces had been transferred to tertiary medical services in Gauteng.
State-owned entities such as the National Health Laboratory Services, Workmen’s Compensation and the Road Accident Fund were also named as some of the debtors. The premier added that the money owed also had an impact on audit outcomes, and emphasised that debts owed need to be collected urgently.
Makhura mentioned that a dispute resolution and debt management committee had been set up to help fast track payments of the debts owed to the Gauteng Provincial Government, and he highlighted that he was convinced that the committee will help to collect outstanding debts through ringfencing and direct payments by national departments and state-owned enterprises.
“The experience of the progress we have made in paying the municipal debts is an illustration of the effectiveness of this approach,” he said.
On a positive note, Makhura mentioned that the health department in Gauteng was doing well in revenue collection. “Patient fees have increased by six per cent from the last financial year.”
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