DA to request Treasury to table a recovery plan for R4.5 billion owed to NHLS
25 March 2015
During a presentation to the Portfolio Committee on Health this week it was revealed that the National Health Laboratory Service (NHLS) is owed R4.5 billion by provincial governments.
This is simply not sustainable. The continual defaulting on debts by provinces could threaten the organisation's entire functioning, compromising its ability to provide diagnostic services with real life-and-death consequences. The figure of R4.5 billion is staggering given that the NHLS' entire budget for the 2015/16 financial year is just over R6 billion.
The NHLS is tasked with ensuring the provision of laboratory services to all health facilities in the public sector and includes:
Relevant diagnostic tests (this includes tests for HIV and tuberculosis, which is an essential part of tackling the twin HIV/AIDS and TB epidemics);
Training and research; and
Specialised divisions, such as the National Institute for Communicable Diseases, National Institute for Occupational Health and the National Cancer Registry.
The DA will request National Treasury to present before the Portfolio Committee on Health a recovery plan to recoup debt owed by the respective provinces before the close of the 2014/15 financial year. Mechanisms for exacting accountability from provinces who have failed to pay the NHLS for services rendered must be put in place by Treasury in the form of a directive.
The following table shows the breakdown of debt owed to the NHLS:
|
Provinces |
Amount owed to NHLS prior to April 2014 |
Amount owed to NHLS (April 2014 - January 2015) |
Total Debt owed to NHLS |
|
KwaZulu-Natal |
R2 860 503 702 |
R428 461 967 |
R3 288 965 669 |
|
Gauteng |
R923 032 975 |
R169 353 758 |
R1 092 386 733 |
|
North West |
R57 382 555 |
R2 592 529 |
R59 975 084 |
|
Mpumalanga |
R58 535 081 |
Nil |
R58 535 081 |
|
Free State |
R22 727 879 |
Nil |
R22 727 879 |
|
Limpopo |
R7 460 315 |
Nil |
R7 460 315 |
|
Northern Cape |
R15 050 698 |
R8 054 828 |
R23 105 526 |
|
Eastern Cape |
R20 172 467 |
R54 466 710 |
R74 619 177 |
|
Western Cape |
R22 018 045 |
Nil |
R22 018 045 |
|
|
R3 986 883 718 |
R 546 272 731 *amount reflects debt after excess paid |
R4 533 156 449 |
The NHLS must be commended for the outstanding services that it is providing despite the enormous financial strain that it has unnecessarily been placed under. The DA will work towards ensuring that measures are put in place to protect the functioning of this critical institution.
Statement issued by Dr Heinrich Volmink MP, DA Shadow Deputy Minister of Health, March 25 2015
Click here to sign up to receive our free daily headline email newsletter
