POLITICS

Gauteng Health still committed to paying suppliers

Dept says 600m paid out to suppliers in December 2011 alone

Department is committed to paying suppliers

19 Jan 2012

The Gauteng Department of Health and Social Development has noted a statement issued by the South African Medical Device Industry Association (SAMED) stating that we owe money to their members and we acknowledge these debts.

MEC Ntombi Mekgwe met with suppliers late last year where she assured them that the department is committed to ensuring that they receive all monies owed to them for services offered to the department.

In an effort to reduce accruals, a team has been set up between Gauteng Department of Finance and the department to attend to the issue of accruals of the department. 

The issue of reducing accruals will be dealt with in phases with the intention that most accruals will be cleared by 30 June 2012. 

During the month of December 2011 an amount of approximately R600 million was paid out to suppliers for goods and services rendered to the department. 

In January, an amount of R118 million has already been released to suppliers and about R50 million will be released to Medical Supplies Depot to enable them to make some payments to suppliers.

As part of accruals project and to ensure that we do not end up in this situation again, the Head of Department, the Provincial Accountant General and the Finance Team are meeting with all hospital managers in an effort to identify areas where financial controls can be tightened.

As the department we are hopeful that through these initiatives, we will be able to bring relief to suppliers.

We would like to reiterate that the department is fully aware and committed to meeting all its past and future obligations to suppliers.

Statement issued by Phume Khumalo, Gauteng Health and Social Development, January 19 2012

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