'Health still owes millions'

GAUTENG: SUPPLIERS UNPAID FOR OVER A YEAR

- Thando Nondywana

Despite promises of reform and system upgrades, the financial crisis facing Gauteng health department has not improved, with it owing 69 suppliers for more than a year and 125 for more than six months.

The department owed suppliers a staggering R743 million for over a year. A total of R117 million had been overdue for more than six months.

This was disclosed by MEC Nomantu Nkomo-Ralehoko in response to questions from DA Gauteng shadow health MEC Jack Bloom in the provincial legislature.

Bloom said the department's chronic budget issues were the result of the "poor financial management" that persisted despite promises from the MEC and premier Panyaza Lesufi to fix it.

"This has been going on for years, When suppliers are owed for over a year, something is seriously wrong."

"Delayed payments mean companies raise prices to cover holding costs, reducing the supplier pool and driving up costs."