R750m underspend by Gauteng Health Department

13 October 2019

The Gauteng Health Department failed to spend a whopping R750 million of its 2018/19 budget despite the huge backlogs in providing quality health services.

This information is revealed in the Auditor-General’s report which was made public in the Legislature last week.

The major underspends by category were as follows:

Machinery and Equipment: R556 million

Goods and Services: R338 million

Buildings and other fixed structures: R115 million

Compensation of employees: R92 million

Transfers to non-profit institutions: R49 million

These underspends were partially offset by R386 million overspent because of medico-legal claims.

Another disappointment is that there was

R2.86 billion irregular expenditure and R26.7 million fruitless and wasteful expenditure.

As a result of the failure to spend the full R46.76 billion budget, R439 million is to be returned to the treasury.

This shows yet again that financial mismanagement is rife in this department despite manifold promises of improvement.

What makes the Government think they can run a complex NHI when the public health system in Gauteng remains mired in crisis?

Issued by Jack Bloom, DA Gauteng Shadow Health MEC, 13 October 2019