‘Health’s ill state not so chronic’

THE health department has denied reports from provincial treasury it was R2.5-billion in the red, two months into the financial year.

“To say [we are in] R2.5-billion deficit, I would not like to believe that because my figures are different. Of course I may be wrong, but subject to correction,” superintendent-general Dr Siva Pillay said.

Pillay made the statements to the health portfolio in the Bhisho Legislature on Friday when asked about their finances.

Last week the Daily Dispatch reported finance MEC Phumulo Masualle slammed administrative chaos in the health and education departments.

Masualle was quoted as saying senior officials of the two departments were holding the provincial treasury to ransom, expecting it to authorise the hiring of personnel for whom no financial provision had been made.

His comment came in the wake of reports the health department had a R2.5-billion deficit, including R874-million in unauthorised expenditure not condoned by the legislature.

Speaking at the portfolio committee, Pillay said his department was in the red by far less.

“We say there must be an understanding between ourselves and treasury, whether it is R2.5-billion or R700-million we are over budget.”

The department’s chief financial officer, Tabisa Majaja, said her department had new figures on its finances. “We don’t understand where they get it from,” she said.

Pillay said his department came from a history of a R2.8-billion deficit, arising from previous liabilities, and their organogram kept expanding.

“We are working on a process to bring it down. It is not that we are not within the budget.”

He charged the refusal to accept the R700million deficit was that treasury did not take into account his department paid for top slicing to fund an overdraft.

Top slicing is when funds are taken from future allocations.

“They do not believe there is an R800million overdraft, but we say you did not give us the R1.2-billion you promised once you top sliced.”

Pillay also decried that the power to authorise payments was taken from him by treasury last December without consultation.

“We have to do things in a consultative manner. Delegated authority can’t be just withdrawn and replaced.

“It seems the way they deal with us, it is as if we are under Section 100,” he said, referring to a constitutional measure when a province is placed under administration by national government.

But the UDM’S Max Mhlati said the department’s woes were due to blowing funds on unbudgeted commitments.

“There was budget within the department but because of cost pressures, the department used those funds for other purposes and when funds were required, there were no funds,” Mhlati said.

COPE’S Thembeka Dunywa said it was of concern the department’s liabilities continued indefinitely, resulting in a deficit.

But Pillay said some of their liabilities arose from taking over 18 state-aided hospitals and clinics from 13 municipalities. — mayibongwem@dispatch.co.za