The Gauteng health portfolio committee has summoned the provincial health department to the legislature to explain why it hasn’t paid invoices in the first quarter of the 2024/25 financial year.

This means that Gauteng health MEC Nomantu Nkomo-Ralehoko will have to appear in front of the portfolio committee to account for her department’s delinquency. 

The summons comes after Public Service Commissioner Vusumzi Mavuso revealed during a health portfolio meeting on Monday that the department has failed to pay 19 212 invoices totalling R1 billion to suppliers within the stipulated 30 days.

“This is on top of 71% of invoices received by  the Gauteng Department of Finance from the provincial health department that were not paid by the end of the fourth quarter of the 2023/2024 financial year,” says DA Gauteng health spokesperson Madeleine Hicklin in a statement.  

According to the National Treasury, all government departments should ensure that invoices are paid within 30 days. Officials responsible for the late or non-payment of invoices are committing financial misconduct.

Hicklin says the late payments are indicative of the systematic failure and the department’s unwillingness to deal with the matter. 

“This has a devastating effect on service delivery throughout the healthcare system,” she says. 

The provincial health department has a history of non-payment of suppliers. 

Earlier this year Health-e News reported on how surgery was halted at  Leratong Regional Hospital in Mogale City west of Johannesburg, leaving more than 500 patients waiting months for operations. All because a disgruntled supplier had not received payment for upgrading air conditioning units.

In April last year, it was reported that the department owed R4 billion to over 42 000 suppliers. At the time suppliers accused senior officials of ignoring their requests for payments. 

Department commits to improve payment

The department’s head of communication, Motalatale Modiba, tells Health-e News that the concerns about  delay in processing suppliers’ payments are noted. However he would not explain which suppliers’ payments are delayed, nor would he go into the possible impact the delays could have on patients. 

“The department wishes to assure the public that it has recently put measures in place to improve the payment of service providers within 30 days and to reduce the number of invoices that remain unpaid. A number of mitigation measures have been put in place to remedy the situation,” he says. 

“The department is strengthening its processes and governance systems to avoid duplication of invoices  and to improve communication with service providers and enter into payment arrangements where necessary.” 

Modiba says reconciliation and verification of all payments is now done monthly to clear any backlogs. 

“No procurement is allowed outside the procurement plan and budget. Verification of work is conducted prior to any invoice payments. CEOs of health facilities have to take full responsibility for oversight in the process as they are the accounting officers,” Modiba says. 

He says the department is implementing a 70:30 split of its monthly budget for payment of invoices, where 70% will be prioritised to be paid to suppliers whose invoices have been processed within 30 days.  Modiba adds that 30% of the budget will be prioritised for suppliers who submit their invoices outside 30 days. He says this will avoid the late payment of invoices. – Health-e News