Gauteng Health still owes service providers R367m, having paid just 21% of its invoices between January and March because of ‘significant cash flow constraints’. Meanwhile, the Department had underspent by a significant R724m, reported MedicalBrief (14 May 2025)
According to spokesperson Motalatale Modiba the Department was forced to ‘prioritise payments to the most critical and non-negotiable services’ affecting service delivery.
A rollover request for R367m has been submitted to National Treasury to cover these commitments.
The Department is ‘evaluating its financial management strategies to enhance cash flow and ensure timely payments’ said Modiba.
Meanwhile, TimesLIVE reported that, in KwaZulu-Natal, around R1.7bn is outstanding, with a number of the suppliers saying the Department had not paid them for more than a year. They include SMMEs, which are, according to legislation, supposed to be paid within a month of rendering services. R1.33bn of the estimated R1.7bn, fell within the 60-day to 90-day payment period.