The Democratic Alliance has written to the Minister of Health, Dr Joe Paahla, to highlight what they say is the “catastrophic impact of poor fiscal management and maladministration” on patients who depend on the state for their health.
According to the DA’s Shadow MEC for Health, Jane Cowley (MPL), this follows the seizure of assets by the Sheriff’s Office from the Provincial Hospital in Gqeberha last week. According to media reports vehicles, chairs and office equipment were seized to cover outstanding debts.
Cowley said she shall further request that both the Provincial and National Treasury put practical and achievable plans in place to settle the accruals and payables so that suppliers can continue to do business with hospitals and avoid asset seizures.
“Provincial Hospital, Livingstone, and others have had their operational budgets severely slashed by the Department. To continue offering services, these hospitals have accumulated substantial debts to suppliers and service providers, which they simply cannot afford to pay.”
Cowled stated that in response to a parliamentary question, the Head of the Department, Rolene Wagner, acknowledged that at the beginning of the new financial year in April, various suppliers were collectively owed more than R970 million.
“This comprised only a small percentage of their accruals, which amounted to R4,7 billion. This means that nearly 17% of this year’s R28.8 billion health budget allocation should be going to pay off debt from previous years”.
According to Cowley, Afrox publicly threatened last month to stop supplying the department with oxygen and other gases if their account was not settled. In addition, several small and medium suppliers have cut their losses and some have been forced to close their doors. “Bigger companies have adopted a zero-tolerance approach to carrying this outstanding debt, in some cases for years, and are now taking action,” said Cowley.
This story will be updated with comment from the Dept of Health as soon as it is received.
