Gauteng health facing budget shortfall spent R16 million on suspended officials

Provincial opposition benches have set a bleak prediction for the Gauteng Department of Health (GDH).  

The department is missing its deadlines to pay suppliers and faces the prospect of a R4.8 billion budget shortfall by the end of this financial year.

This emptying of the coffers is made worse by an inability to fill senior posts, while still paying the salaries of suspended officials.

R5.3 billion spent per month

The GDH has an allocation budget of R64.8 billion for the 2024/25 financial year.

As per the Gauteng Provincial Government Second Quarter State of Finances report, R35.2 billion of that had already been spent by the end of September.

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Democratic Alliance (DA) Shadow MEC for Health Jack Bloom stated that at the current rate of expenditure, a R4.8 billion shortfall is on the cards.

“The GDH spends about R5.3 billion a month, so they will run out of money in early March next year,” projects Bloom.

“They will also delay payments to suppliers to get through March next year until the new financial year in April,” Bloom told The Citizen.

“The new budget will then be depleted by paying the arrears, and we will have a similar payments crisis later,” he added.

Staff and equipment shortages

Salary increases accounted for R1.2 billion of the expenditure for the first six months of the current financial year, while legal fees, emergency procurement and other sundries amounted for R3.5 billion.

However, suppliers were being left short-changed and the combined sum of invoices which had not been paid within the required 30 days totaled R1.9 billion.

Bloom said that some suppliers were no longer willing to do business with the department, noting how one medical equipment manufacturer was owed at least R62 million.

The GDH acknowledged an enquiry sent by The Citizen on Monday but at the time of publication, no response had been received.

“Patients are already suffering due to staff and equipment shortages which will worsen as the budget cuts take hold,” said Bloom.

Six officials suspended on full pay

While every cent was being counted across the aisle, Member of the Executive Council (MEC) Nomantu Nkomo-Ralehoko confirmed in a written response to a question in the provincial legislature that R16.7 million had been spent on salaries for suspended officials.  

Among the 10 officials who had been paid while sitting at home, three had been suspended for at least 992 days each.

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On the list were two suspended officials who had raked in more than R4 million since their suspension, with six of the officials continuing to be paid their government wages.

Reasons for their suspension include procurement irregularities, sexual harassment and gross insubordination.

The MEC’s response did not specify which officials, but four have since been dismissed, two still face investigations by the Special Investigating Unit and four are awaiting the outcomes of hearings and presiding officer verdicts.

“It is outrageous that so much money is spent on suspended employees while disciplinary processes drag on for years,” said DA member of the provincial Standing Committee on Public Accounts Alan Fuchs.

Holes in senior managment

The budget constraints have prevented the department from hiring a permanent chief director for a sixth year running while three heads of department (HoD) were still in acting positions.

As a result, only seven of the 15 HoDs filed performance agreements (PAs) for the office of the Premier Panyaza Lesufi’s most recent quarterly report.

 “Five HoDs did not finalise their PAs due to departmental strategic planning challenges and a system glitch.

“The premier has signed a condonation letter to the Ministry of Public Service and Administration,” the report noted.

Bailout a possibility

Bloom reiterated his call for Lesufi to fire GDH head Arnold Malotana as a worsening of the situation would place lives at risk.

“The consequence of the money squeeze is that posts have been frozen as well as the purchase of new machinery.

“Putting [the GDH] under administration is necessary as the present management are clearly incapable of fixing it,” Bloom told The Citizen.

“They will need a bail out, but this should come with strict conditions,” he concluded.

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