Gauteng Health budget faces R11 billion deficit crisis

29 May 2017

The Gauteng Health Department faces a funding gap of R10.9 billion this year due to accruals from previous years that need to be settled, commitments to long-term contracts, and the possible payments for medical negligence.

This was revealed in a presentation by the Department at a meeting of the Gauteng Legislature Health committee that was held last week Friday at the Geluksdal community hall.

According to the presentation, the following "budget pressures" were identified:

Accruals to be settled - R4.168 billion

Commitments - R2.95 billion

Possible litigations to be settled in current financial year -R3.78 billion

This is a huge chunk of the R40 billion health budget. The Chief Financial Officer George Mahlangu described it as a "dire situation".

The accruals refer to payments outstanding to suppliers who have long suffered from slow payments despite the legal requirement to pay within 30 days.

It was also reported that R860 million for hospital infrastructure was withheld from National Treasury "pending submission and approvals of plans by the department".

Our hospitals are falling apart, but available money is not used because of poor planning.

The provincial government has promised for many years that the health department will be "turned around" but abysmal management continues.

Money will yet again have to be found to bail out the department otherwise services will suffer.

The department will only come right when officials at all levels are held strictly accountable for poor management that leads to massive financial waste and injured patients who sue in court for large settlements.

Issued by Jack Bloom, DA Gauteng Shadow MEC for Health, 29 May 2017