Gauteng clinics and hospitals to settle municipal debts

30 March 2010

The Gauteng Department of Health and Social Development is making arrangements to settle all amounts owed by clinics and hospitals for municipal services.

Last month, February the department paid out an amount R110 million to all municipalities for services rendered. A sum of R57,6 million remained outstanding after this payment and the department will be settling this amount next month, April.

Disputes raised by facility managers over the accuracy of bills received from municipalities and the cash flow problems experienced by the department in the year were two factors responsible for the slow payment of accounts.

MEC Qedani Mahlangu has instructed that payment for municipal services must be prioritised and be settled as the department meets its obligation to all its service providers. “In future the department must ensure that no monies are owed to municipalities,” the MEC said.

Slow payment resulted in electricity cut offs in only three of facilities but supply was restored in the same day after representations were to the concerned local authorities.

Enquiries:
Mandla Sidu
Cell: 082 773 9013

Simon Zwane
Cell: 082 551 9892

Issued by: Department of Health and Social Development, Gauteng Provincial Government
30 March 2010