KZN health department’s unpaid R1.7bn bill sparks protest
Some suppliers say they haven't been paid more than a year after completing work
07 May 2025 - 18:07
byMlungisi Mhlophe-Gumede
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Some service providers to the KwaZulu-Natal department of health say they have not been paid for more than a year. Picture: 123RF/HXDBZXY
Scores of service providers embarked on a protest march against the KwaZulu-Natal department of health, which owes them R1.7bn.
Some said the department, which is apparently experiencing a shortage of medicines, had not paid them for more than a year. They included SMEs, which are legally bound to be paid within a month of rendering services.
“The DA notes with concern that businesses in KwaZulu-Natal are owed an estimated R1.7bn by the provincial department of health. The staggering sum is revealed in response to a DA written parliamentary question,” said Imran Keeka, the DA’s provincial spokesperson for health.
He said a reply to the question indicated that R1.33bn of the outstanding amount was between 60 days and 90 days overdue. A further 1,519 invoices, amounting to R71m, were more than 90 days overdue.
Small and medium-sized companies in KwaZulu-Natal were the worst affected, he added.
“The DA notes that KZN health MEC, Nomagugu Simelane-Mngadi, has always been open and forthright about her department’s financial woes during portfolio committee meetings. However ... the nonpayment of suppliers on time should not have arisen in the first place or to the point where they are affecting services,” Keeka said.
“Equally concerning is that the MEC and acting HOD [head of department] intimated ... that some service providers, while paid, had not paid their staff. This had led to protests, in some instances implicating the department. However, what happens within companies once the department has concluded its business with them is beyond its control.”
Keeka said the department had adopted a “take from Peter to pay Paul” approach in a bid to resolve some of the payment issues.
“This appears to have left some companies struggling more than others. Again, it particularly affects small businesses. Regrettably, this resulted in several suppliers gathering at the department’s Pietermaritzburg head office on Monday, demanding payment.”
Keeka described the situation as dire and in need of urgent attention though the situation is unlikely to be resolved by the end of the month. Finance minister Enoch Godongwana is scheduled to present a revised national budget on May 21 and provinces are set to table their budgets within two weeks thereafter.
The KwaZulu-Natal health department communications unit did not respond to requests for comment.
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.
KZN health department’s unpaid R1.7bn bill sparks protest
Some suppliers say they haven't been paid more than a year after completing work
Scores of service providers embarked on a protest march against the KwaZulu-Natal department of health, which owes them R1.7bn.
Some said the department, which is apparently experiencing a shortage of medicines, had not paid them for more than a year. They included SMEs, which are legally bound to be paid within a month of rendering services.
“The DA notes with concern that businesses in KwaZulu-Natal are owed an estimated R1.7bn by the provincial department of health. The staggering sum is revealed in response to a DA written parliamentary question,” said Imran Keeka, the DA’s provincial spokesperson for health.
He said a reply to the question indicated that R1.33bn of the outstanding amount was between 60 days and 90 days overdue. A further 1,519 invoices, amounting to R71m, were more than 90 days overdue.
Small and medium-sized companies in KwaZulu-Natal were the worst affected, he added.
“The DA notes that KZN health MEC, Nomagugu Simelane-Mngadi, has always been open and forthright about her department’s financial woes during portfolio committee meetings. However ... the nonpayment of suppliers on time should not have arisen in the first place or to the point where they are affecting services,” Keeka said.
“Equally concerning is that the MEC and acting HOD [head of department] intimated ... that some service providers, while paid, had not paid their staff. This had led to protests, in some instances implicating the department. However, what happens within companies once the department has concluded its business with them is beyond its control.”
Keeka said the department had adopted a “take from Peter to pay Paul” approach in a bid to resolve some of the payment issues.
“This appears to have left some companies struggling more than others. Again, it particularly affects small businesses. Regrettably, this resulted in several suppliers gathering at the department’s Pietermaritzburg head office on Monday, demanding payment.”
Keeka described the situation as dire and in need of urgent attention though the situation is unlikely to be resolved by the end of the month. Finance minister Enoch Godongwana is scheduled to present a revised national budget on May 21 and provinces are set to table their budgets within two weeks thereafter.
The KwaZulu-Natal health department communications unit did not respond to requests for comment.
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