Gauteng Health fails to pay 78% of suppliers within the required 30 days

3 February 2022

Despite promises to improve financial management, the Gauteng Health Department only pays 22% of suppliers within 30 days as required by law.

This is revealed in the recently released Third Quarterly Report of the Gauteng Health Department which covers the period from October to December last year.

According to the report, the failure to pay suppliers on time is “because of payment of Accruals and PPEs including the impact of staff rotation arrangements during Covid which also impacted on processing of payments.”

This is a poor excuse which reflects continuing poor financial management.

Late payments are particularly harsh for township businesses and small businesses which the department is supposed to be encouraging.

Some companies refuse to do business with the department because of slow and irregular payments that can stretch into years of delay.

Speedy payments are the best way to assist small business that supply goods to the department.

Gauteng should follow the example of the Western Cape provincial government which makes most of its payments within 15 days.

Issued by Jack Bloom, DA Gauteng Shadow MEC for Health, 3 February 2022