POLITICS

Gauteng health heading for R1,7bn overspend - Jack Bloom

DA MPL says dept is blaming the OSD for increased expenditure on compensation

GAUTENG HEALTH HEADS FOR R1.7 BILLION OVERSPEND

Despite efforts to stay within budget, the Gauteng Health and Social Development Department is heading for a R1.7 billion overspend in this financial year.

This is the department's own projection contained in the Second Quarterly Report of the Gauteng Department of Finance that was recently tabled in the Gauteng Legislature.

Compensation of Employees is the biggest component of this over-expenditure, amounting to R1.254 billion. According to the report "The pressures are attributed to carry through effect of the Occupational Specific Dispensation (OSD), additional personnel, increased overtime expenditure."

Part of the reason for the increased overtime and personnel expenditure is extended hours, including Community Health Centres that now operate on a 24 hour basis.

A disturbing trend that is identified is that "Health Department payments (are) crowding out those of the Social Development Branch due to the limited availability of funds - for instance, during Q2, no actual funds were transferred to Non-Profit Organisations".

This is an astounding admission that shows how wrong it was to merge the Health and Social Development Departments. The latter is definitely suffering, particularly NGOs that do not get paid on time.

The Social Development part of this department is actually projecting a R57.4 million underspend in this financial year, which is outrageous in view of the dire need in this area.

Meanwhile, suppliers to the department are also suffering from non-payment due to "cash flow pressures"

It's all very depressing, especially since the report says that "The prospects of a bail-out from National Government are non-existent".

Improving efficiency and eliminating all corruption and waste is vital in this department, which is a daunting challenge for new MEC Ntombi Mekgwe.

Statement issued by Jack Bloom MPL, DA Gauteng Health Spokesman, November 16 2010

Click here to sign up to receive our free daily headline email newsletter