Stability returning to Gauteng Hospitals - DOH

Provincial dept preparing to enter into final phase of paying outstanding debts to suppliers (March 18)

Stability returning to Gauteng Hospitals

18 Mar 2012

Stability is returning to Gauteng public hospitals as the provincial Health Department prepares to enter into the final phase of paying all outstanding debts to suppliers.

Payments to suppliers has improved significantly since February when the Gauteng provincial government released R1 billion to the department to pay suppliers. This in turn has encouraged suppliers to release more stock to provincial health facilities.

The department has developed a plan to clear all debts by the end of June this year. In terms of this plan all suppliers owed less than R1 million will be paid in April. Suppliers owed less than R100 million will receive their money in May and those owed over R100 million will be paid in June.

From April 2011 to date, the department has processed payments totalling R11.7 billion for all suppliers including those who provide medicines. Once payments are made, suppliers are contacted to fast track deliveries.

A meeting was held with suppliers on 2 March 2012 to discuss payment plans and tonegotiate progress on deliveries of priority pharmaceuticals. Following this meeting, 39 payment plans were issued to suppliers who were present at this meeting. Payment plans to other suppliers were made available by 12 March 2012.

The department will continue to verify the validity of invoices submitted through the accrual clearing house which has been established with the Gauteng Department of Finance.

Through this process, the department has identified instances where invoices were submitted for good or services that were actually not delivered. Invoices worth R1 million for goods or services not rendered have been identified and will not be honoured. Duplicate invoices worth R188 000 for goods and services already paid for have also been isolated and will not be honoured.

Suppliers who have queries about payments are encouraged to email their enquiries to[email protected] or to call these numbers: 0113557633 , 0113557655 , 0113557649 , 0113557749 and 0113557747 .

Statement issued by Simon Zwane, Gauteng Health and Social Development, March 18 2012

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