Department owes millions

THE GAUTENG Department of Health has been embroiled in 75 court cases relating to suppliers of goods or services not being paid over four financial years.

Four cases were brought against the department in the 2015/16 financial year, while there were 19 the previous year, 25 in 2013/14 and 27 in 2012/13, Health MEC Qedani Mahlangu said in a written response to DA MPL Jack Bloom’s questions in the legislature recently.

The department would not release details about the cases because these had yet to be finalised in court. The department did reveal that it had paid R2 248 679.46 during the 2013-2016 period. An additional R244 907.30 in interest was paid for late payments.

Mahlangu revealed that Krumhold Foods and Commodities (Pty) Ltd had laid a claim for R1 516 482 for non-payment of goods between August 2009 and August 2011.

In 2014, Public Protector Thuli Madonsela released a report titled “Unsettled Settlements” in which her team investigated a dispute between the department and Sipho Ndlovu’s company, CKB Washroom Sales and Services. This had been a four-year dispute for non-payment of hygiene equipment supplies and the department’s failure to pay Ndlovu an outstanding R2.9 million. Madonsela directed that the department pay Ndlovu within 60 days, but he had already lost his business and was blacklisted.

“It is shameful that so many companies have to sue the department to get payment,” Bloom said yesterday. “Some smaller firms have unfortunately gone bankrupt because of late payment,” he said.

Mahlangu said the department was working on paying suppliers within 30 days of their invoices.

Bloom said: “Companies should not have to go to court for money that is due to them.”