Gauteng MEC for Health and Wellness, Nomantu Nkomo-Ralehoko reveals that the Health Department owes R225 million to municipalities.
Image: Picture: Jacques Naude / Independent Newspapers
The Gauteng Department of Health owes several municipalities R225 million for electricity, water, sewage and waste removal.
This information was disclosed by Health and Wellness MEC Nomantu Nkomo-Ralehoko in a written reply to the Democratic Alliance (DA) Health Shadow MEC Jack Bloom’s questions in the Gauteng Legislature last week.
The DA requested the MEC to disclose the total amount owed to municipalities and to outline the department's plans to settle its municipal bills.
Nkomo-Ralehoko revealed that the department owes R160 million to Emfuleni Municipality for Cost of Employment and Goods and Services. She indicated that the department also owes R14.9 million to the Midvaal Council, claiming that the delay of payment was due to the unavailability of active Service Level Agreements between the municipalities and the department.
"The department blames money shortages, late submission of invoices, and the lack of Service Level Agreements (SLAs) for these debts," said Bloom.
Nkomo-Ralehoko stated in her reply that the Johannesburg District is owed R18.4 million for water, and electricity, and this is due to the late submission of invoices by the council.
Meanwhile, Ekurhuleni is owed R17.84 million for services, including R5.7 million by the Far East Rand Hospital for water, electricity, and waste removal. The MEC indicated that the monthly payments will be made to the municipality to settle the bills.
Tambo Memorial Hospital owes R4 million for sewage disposal, water, and electricity, while Pholosong Hospital also has an outstanding amount of R5.4 million.
The MEC indicated that the date for payments of municipal bills in Pholosong Hospital will be released as soon as the treasury releases payments.
The department said the provincial government would assist the department with possible dates to pay for municipal services owed by Tambo Memorial Hospital.
"The councils claim that the amount owing is far higher, so these disputes also need to be resolved speedily," said Bloom.
The DA said they will continue to push for strict financial management in the department to ensure all suppliers are paid in good time, preferably within 15 days.
The DA also indicated last month that in the 2024/2025 financial year, the Gauteng Department of Health failed to pay 23% of suppliers of goods and services within 30 days and 37% of suppliers were paid after 30 days, and 30% of suppliers did not receive payment for periods longer than 30 days.
The party said the Public Service Commissioner, Vusumuzi Mavuso revealed during the Gauteng Department of Finance Portfolio Committee meeting that the department owes suppliers over R4.8 billion.
IOL