Department to release R1.5 billion to service providers
13 Apr 2012The Gauteng Department of Health is preparing to release close to R1.5 billion to pay service providers next week, as it enters the second phase of clearing debts owed to suppliers.
A total of R237 million will go towards 2604 suppliers who are owed less than R1 million. These include non-governmental organisations, SMMEs and food suppliers which will receive full settlements of mony owed to them.
A sum of R874 million will be used to pay for medicines and medical supplies.
These payments will follow a payment plan announced by the department in which an undertaking was made to pay debts of less than R1 million this month. Debts under R100 million will be settled by May and suppliers owed over R100 million will receive their settlement payments by June this year.
Suppliers who will be receiving payments include security companies, NGOs, municipalities, medical waste removal companies, and suppliers of coal, fuels and others.
In the first phase of the payment cycle, the department had focused on all debts owed until March 2011. In this second phase, focus will be on debts owed from April 2011 to the end of March 2012. The second phase is expected to end in June this year.
A total of R11.1 billion has been paid to suppliers since April last year.
The department would like to reiterate its commitment to honour all its past and future obligations to service providers.
Service providers can call the department’s contact centre to enquire about payments on 011 355 2222/7633/7650/7636 or 7633.
Cell: 082 551 9892
Issued by: Gauteng Health
13 Apr 2012
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