Note to Editors: Please note Dr Keeka sound bite in English
The DA notes with concern that businesses in KwaZulu-Natal (KZN) are owed an estimated R1.7billion by the provincial Department of Health (DoH). The staggering sum is revealed in response (view here) to a DA written parliamentary question.
The reply further indicates that, of this, R1.33billion falls within the 60 to 90-day payment period. Meanwhile, there are 1 519 unpaid invoices in the over 90-day period, amounting to just over R71million. It is understandable that these precise figures would have undoubtedly fluctuated given that such finances always remain fluid.
The DA notes that KZN Health MEC, Nomagugu Simelane, has always been open and forthright about her department’s financial woes during portfolio committee meetings. However, such a situation – the non-payment of suppliers on time – should not have arisen in the first place or to the point where they are affecting services.
The concern arising out of the parliamentary reply is that it’s very possible that small and medium sized companies in KZN are worst affected. Equally concerning is that the MEC and acting HOD intimated, during the same meetings, that some service providers, while paid, had not paid their staff. This had led to protest action in some instances implicating the DoH. However, what happens within companies once the DoH has concluded its business with them, is beyond its control.
The DA further notes that the DoH has unfortunately adopted a ‘take from Peter to pay Paul’ approach in a bid to resolve some of the payment issues. This appears to have left some companies struggling more than others. Again, it particularly affects small businesses. Regrettably, this resulted in several suppliers gathering at the department’s Pietermaritzburg head office on Monday, demanding payment.
The response from MEC Simelane confirms that the outstanding amounts due to suppliers will be paid during the first quarter of the new financial year which began on 1 April.
Currently, the Division of Revenue Bill or the budget, as presented by Finance Minister Enoch Godongwana on 12 March, is withdrawn with provinces set to table their budgets within two weeks of May 21. Once KZN’s budget is tabled and certainty exists, it is expected that the situation may turn around.
The DA, as a solid partner within KZN’s Government of Provincial Unity (GPU) will further probe the non-payment of invoices and will continue to probe accountability mechanisms to ensure that this is not an ongoing fly in the ointment.
We will also be keeping a close watch on the DoH’s finances. This includes soliciting quarterly updates of outstanding payments, at the very least, and monitoring the department’s cash flows and In Year Monitoring (IYM) – both of which are currently proving difficult to obtain, despite continuous requests.
If KZN’s GPU is committed to improved healthcare services and accountability, it must ensure that oversight mechanisms are taken seriously. As part of the GPU, the DA is committed to ensuring that KZN’s frontline departments, including Health, Education and Social Development are stabilised and protected when it comes to fiscal resources. And, that when departmental senior officials responsible for finances are unable to do their jobs properly, there are consequences. The DA will work with the MEC to ensure that this happens.