Pretoria - Gauteng Health MEC Ntombi Mekgwe has instructed her department to finalise timeframes for the payment of suppliers.
Speaking to suppliers during an indaba held in Johannesburg on Tuesday, Mekgwe said the department had put in place systems to improve payment of suppliers and verify accounts received.
"In order to improve the situation, we have strengthened Supply Management systems and processes at all facilities. We are in the process of finalising the migration of Procurement functions from Gauteng Shared Service Centre to the department and we are considering alternative sources of funding to expedite payment of suppliers in order to make sure that service delivery is uninterrupted," she said.
Despite the cash flow challenges, Mekgwe said the department tries to pay suppliers from available resources, noting that more than R300 million is spent on payments to service providers, every month.
The department has also undertook to give all suppliers that are owed money, letters of acknowledgement of debt, which can be presented to their respective financial institutions or SARS with firm recommendations.
These letters will be signed by the acting Chief Financial Officer.
Mekgwe reiterated the department's commitment to meeting all its past and future obligations to suppliers and appealed to all suppliers to continue rendering services to the department so that service delivery is not interrupted and disrupted in health facilities. - BuaNews
