Gauteng health clarifies hospitals’ City Power debt
Most debts have been settled or are being settled, but some have been questioned
30 November 2023 - 10:57
byKhanyisile Ngcobo
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Charlotte Maxeke Hospital in Johannesburg. File picture: ANTONIO MUCHAVE
The Gauteng health department has set the record straight on the billing issues affecting some of its hospitals, as City Power threatens to disconnect some of them if their alleged huge bills go unpaid.
City Power said on Tuesday it was owed R41m by Charlotte Maxeke, R13m by Helen Joseph and R4m by Rahima Moosa Mother and Child hospitals. South Rand Hospital is sitting at R3m and Chris Hani Baragwanath Academic Hospital sitting at R2.6m.
City Power said it would disconnect Charlotte Maxeke on Thursday if the outstanding bill were not settled.
Health department spokesperson Motalatale Modiba said it had an obligation, like any consumer of municipal services, to ensure that when there were discrepancies in the billing, those were verified before any payment could be processed.
Modiba said at Charlotte Maxeke, six invoices amounting to R32m had been paid to the city between April and September towards the bill. An additional payment has been finalised in the past week, while “the last invoice of R5.2m is now being processed for a purchase order to be created before the money is released.
“These amounts excluded interest raised as the department is of the view that the interest has been raised even on invoices that have long been settled, leading to incorrect amounts being claimed.”
At Helen Joseph, all invoices received totalling a principal debt of R13m had been paid fully and received by the city between August 7 and November 23, Modiba said. “It would appear that the amounts received were not yet allocated to relevant invoices and accounts on time, so they can also reflect on City Power’s records.”
At Rahima Moosa, Modiba said the department's R4m debt was paid in three invoices dated October 19 and 26. These payments were received by the city but not updated on City Power's records.
At South Rand hospital, the department said it received an “abnormal” invoice of over R2m and this delayed the processing of payment. “This amount is now due to be processed and paid with the current pay run. There is an amount of R625,807, which is being processed for the creation of a purchase order to effect payment.”
At Chris Hani Baragwanath, “the debt of R2.6m owed to the city is current and an invoice was received in November, which is now being processed for the creation of a purchase order to effect payment.”
On the Children’s Memorial Institute Hospital, which City Power incorrectly referred to as the Nelson Mandela Children’s Hospital (NMCH), Modiba said: “City Power incorrectly attributed a debt of R47m in its announcement to NMCH instead of [the institute].
“The institute houses a number of NGOs that are not related to the department, except for the laundry services and a boiler house servicing Charlotte Maxeke Hospital, which are in the same yard but in a different building. There is unfortunately one electricity meter for which the department cannot be fully responsible. This is a matter that requires further engagement in terms of who is responsible for what.
“The department wishes to state that the amounts that have already been paid to the city from April to November continue to incur interest on the city’s records, something that the department disputes.”
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Gauteng health clarifies hospitals’ City Power debt
Most debts have been settled or are being settled, but some have been questioned
The Gauteng health department has set the record straight on the billing issues affecting some of its hospitals, as City Power threatens to disconnect some of them if their alleged huge bills go unpaid.
City Power said on Tuesday it was owed R41m by Charlotte Maxeke, R13m by Helen Joseph and R4m by Rahima Moosa Mother and Child hospitals. South Rand Hospital is sitting at R3m and Chris Hani Baragwanath Academic Hospital sitting at R2.6m.
City Power said it would disconnect Charlotte Maxeke on Thursday if the outstanding bill were not settled.
Health department spokesperson Motalatale Modiba said it had an obligation, like any consumer of municipal services, to ensure that when there were discrepancies in the billing, those were verified before any payment could be processed.
Modiba said at Charlotte Maxeke, six invoices amounting to R32m had been paid to the city between April and September towards the bill. An additional payment has been finalised in the past week, while “the last invoice of R5.2m is now being processed for a purchase order to be created before the money is released.
“These amounts excluded interest raised as the department is of the view that the interest has been raised even on invoices that have long been settled, leading to incorrect amounts being claimed.”
At Helen Joseph, all invoices received totalling a principal debt of R13m had been paid fully and received by the city between August 7 and November 23, Modiba said. “It would appear that the amounts received were not yet allocated to relevant invoices and accounts on time, so they can also reflect on City Power’s records.”
At Rahima Moosa, Modiba said the department's R4m debt was paid in three invoices dated October 19 and 26. These payments were received by the city but not updated on City Power's records.
At South Rand hospital, the department said it received an “abnormal” invoice of over R2m and this delayed the processing of payment. “This amount is now due to be processed and paid with the current pay run. There is an amount of R625,807, which is being processed for the creation of a purchase order to effect payment.”
At Chris Hani Baragwanath, “the debt of R2.6m owed to the city is current and an invoice was received in November, which is now being processed for the creation of a purchase order to effect payment.”
On the Children’s Memorial Institute Hospital, which City Power incorrectly referred to as the Nelson Mandela Children’s Hospital (NMCH), Modiba said: “City Power incorrectly attributed a debt of R47m in its announcement to NMCH instead of [the institute].
“The institute houses a number of NGOs that are not related to the department, except for the laundry services and a boiler house servicing Charlotte Maxeke Hospital, which are in the same yard but in a different building. There is unfortunately one electricity meter for which the department cannot be fully responsible. This is a matter that requires further engagement in terms of who is responsible for what.
“The department wishes to state that the amounts that have already been paid to the city from April to November continue to incur interest on the city’s records, something that the department disputes.”
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