Department does not owe suppliers R2.2bil

Friday, October 30, 2009

Pretoria - The Gauteng Department of Health and Social Development has dismissed reports that it owes suppliers R2.2 billion.

Provincial MEC for Health and Social Development, Qedani Mahlangu, said the reports are based on outdated information and an inaccurate interpretation of the figures.

According to the department, more than R1.4 billion of the so-called outstanding debt relate to goods and service, which have not been delivered.

"Also included in the 'debt' reported about, are orders for which invoices have not been supplied, in some instances there is no proof that goods or services were received.

"It is therefore inaccurate and misleading to state that suppliers had claimed R3 billion when invoices had not been submitted and goods or services have not been received," Mahlangu said.

Mahlangu said that the department was committed to Operation Bhadala and has been processing payments to suppliers on a weekly basis.

Our records show that the department processed payments amounting to R187 million in the week ending 23 October 2009, the outstanding balance at the beginning of this week was R315 million, she said.

She assured service providers that the department is committed to pay all outstanding amounts and also reiterated the department's commitment to work together with service providers to resolve outstanding legal disputes.

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