Premier intervenes in non-payment of essential medical suppliers

9 Feb 2012

Gauteng Premier Nomvula Mokonyane today took steps to ensure the swift payment of suppliers of essential medicines to Gauteng hospitals.

As widely reported in the media this week, some Gauteng health institutions had run out of essential medication, putting the lives patients at risk.

"I have instructed the Gauteng Director-General to set up a team to identify projected savings and pay suppliers with immediate effect. I can say with confidence that we will be paying up to R1 billon to health suppliers as of tomorrow until the end of the financial year March," Mokonyane said.

That would bring the total payments to suppliers for the year to R1.6 billion.

An amount of R736 million will be paid to 175 suppliers today and tomorrow, Mokonyane said.

Of the R736 million, R386 million will go to companies providing essential medication to Gauteng hospitals.

The team will meet with outstanding individual suppliers early next week to initiate payment negotiations.

"I can also announce that we are making further payments to the National Health Laboratory Services to the tune of R150 million and the South African National Blood Services is receiving R50 million by the end of this week," Mokonyane added.

The Premier explained that the funds identified came from the recently-announced provincial savings exercise and conditional grants.

The Gauteng Provincial Government has committed itself to paying all suppliers owed by the Department of Health and Social Development by June 2012.

Statement issued by Gauteng Office of the Premier, February 9 2012

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