Gauteng health department places moratorium on new projects to stabilise finances
The Gauteng department of health has placed a moratorium on all new construction projects in the 2018-19 financial year so as to stabilise its finances. The announcement was made by Gauteng health MEC Gwen Ramokgopa in a portfolio committee meeting in the provincial legislature on Tuesday. Ramokgopa presented the third quarterly report for the 2017-18 financial year to the committee, explaining all operational issues facing the department. As at end of the third quarter‚ the overall expenditure was R32.35bn or 77.1% of the total adjusted appropriation for 2017-18 financial year. This expenditure is above the set target of 75% and is mainly due to payment of accruals of about R4bn through the current year’s budget. At the current rate‚ the department is projected to incur between R6.5bn and R7bn in accruals by the end of the current financial year. This is almost the same as the previous financial year. Ramokgopa explained the department’s dire financial situation. "On an annual basi...
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