LETTER: Gauteng health department’s overdue bills are sickening
Late payments place the delivery of services and small businesses at severe risk
25 October 2022 - 18:43
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For almost two months now the entire country has been plagued by load-shedding. This has affected small-business owners, who are already battling to recover from the losses they suffered during the Covid lockdown and July 2021 unrest.
Adding further insult to injury, the Gauteng department of health is taking too long to pay small businesses for their services. This means they may struggle to pay their employees on time, and may even have to close down.
According to the department, of 122,018 invoices received for the 2021/2022 financial year, just 22,794 were paid within 15 days. Of the remaining 99,227 invoices, 36,992 were paid beyond 15 days and 62,235 were paid beyond 30 days. As a result, penalties amounting to to just over R1.51m were paid to FNB (for medico-legal litigation), Telkom, Eskom, and Standard Bank (for emergency medical services).
Late payments place the delivery of services at risk, as suppliers may withhold their services until they are paid in full.
The DA will be putting pressure on all government departments to pay suppliers within 15 days, as is the practice in the Western Cape. This will allow departments to negotiate an early settlement discount, and avoid penalties for late payments.
Patrick Atkinson, MPL DA Gauteng finance & e-government spokesperson
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
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.
LETTER: Gauteng health department’s overdue bills are sickening
Late payments place the delivery of services and small businesses at severe risk
For almost two months now the entire country has been plagued by load-shedding. This has affected small-business owners, who are already battling to recover from the losses they suffered during the Covid lockdown and July 2021 unrest.
Adding further insult to injury, the Gauteng department of health is taking too long to pay small businesses for their services. This means they may struggle to pay their employees on time, and may even have to close down.
According to the department, of 122,018 invoices received for the 2021/2022 financial year, just 22,794 were paid within 15 days. Of the remaining 99,227 invoices, 36,992 were paid beyond 15 days and 62,235 were paid beyond 30 days. As a result, penalties amounting to to just over R1.51m were paid to FNB (for medico-legal litigation), Telkom, Eskom, and Standard Bank (for emergency medical services).
Late payments place the delivery of services at risk, as suppliers may withhold their services until they are paid in full.
The DA will be putting pressure on all government departments to pay suppliers within 15 days, as is the practice in the Western Cape. This will allow departments to negotiate an early settlement discount, and avoid penalties for late payments.
Patrick Atkinson, MPL
DA Gauteng finance & e-government spokesperson
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
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