Gauteng health owes Telkom R11m

The Gauteng Department of Health owes Telkom R10.8 million in unpaid invoices that have not been settled within the maximum 30-day period under the law.

The department's inability to pay invoices on time puts the fixed-line operator in a sticky situation, as Telkom is unlikely to cut off critical services to hospitals in Gauteng and put patients' lives at risk.

In addition, if government cannot manage its payments to Telkom, the future of medical technological development could be placed under serious strain, as a landline is a basic necessity for advances such as telemedicine.

The overdue amount to the fixed-line operator is part of a total of at least R1.4 billion owed by the department to several entities, including non-governmental organisations. On average, invoices are outstanding for 67 days.

The outstanding amounts fly in the face of President Jacob Zuma's promise in the State of the Nation address that progress is being made to pay small and medium businesses within 30 days.

The Democratic Alliance's spokesman for finance in Gauteng, Mike Moriarty, says the invoices have not been paid because of staff delays in signing off on the supporting documents that are needed before accounts can be settled.

Moriarty says the outstanding amounts owing by the health department were revealed in the Gauteng Legislature, when the Gauteng Finance Department tabled its third quarter performance report.

He says the report did not provide “full details of the extent of the problem”, but showed that the health department has yet to pay invoices totalling R1.4 billion from the current financial year, which will now roll over into the new year, starting in April.

Moriarty says the total of overdue invoices across all Gauteng departments could be as high as between R2 billion and R3 billion, which will roll over into the new financial year and cut into the next budget.

As far as Moriarty can work out, the invoices have not been paid because staff within the department are not following procedure.

He explains that when an invoice is submitted, it is loaded onto the payment system. However, before the amount is settled, supporting documents, such as proof of delivery, must be logged on the system.

Moriarty says this is not happening, and as a consequence, the department is in breach of the Public Finance Management Act, which stipulates that payments must be made in 30 days.

“It's too easy for people to hold back on invoices, and make it look like people are spending within their means,” says Moriarty. “This is a clear inability to exercise adequate financial control.”

Mark Walker, director of insights and vertical industries for the IDC's Middle East and Africa region, says the non-payment of the Telkom bill “is a huge issue”, and part of the general malaise within the public health sector.

However, says Walker: “Telkom can't just go around cutting off hospitals,” as the company needs to balance its commercial imperatives with social responsibility. The company would be entitled to send out warnings and then suspend services, says Walker. “This creates a big problem from a social point of view.”

Telkom prioritises delivery of its lines for essential services, as was the case when the Yeoville exchange was damaged last January after a gas explosion. At the time, the company said it was focusing on connecting critical aspects such as fire and ambulance services.

Walker says the department's lack of control is a warning bell for any future technological developments within the public health sector. “The basic phone line is your umbilical cord.”

He points out that advances in healthcare, such as telemedicine and remote x-rays, rely on basic connectivity, such as a landline. “Increasingly, big advances are being made in medicine, which are reliant on technology, and at the very least, a telephone line.”

Gauteng finance spokesman Khusela Sangoni says the department cannot comment as quarterly reports are being tabled in legislature today. The Department of Health could not be reached for comment, and Telkom was not able to comment this morning.