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Turnaround time has improved for payments to service providers and suppliers, the Gauteng health department said on Monday.
Spokesman Simon Zwane said the department had cut the number of companies it owed money to for over a month from 691 in April to 70 in June.
“The percentage of companies paid within 30 days also improved from five percent in April to 80 percent in June.”
Zwane said the amount the department owed to companies for a period longer than 30 days was reduced from R1.4 billion in April to R51 million this month.
The 305 companies the department owed money to for more than 180 days were also reduced to 65 and the department was committed to servicing their debts before the end of the month.
By the end of last week, the department had paid R3.9 billion.
Of this amount, R3.4 billion was payment for goods and service purchased last year, while the remaining R500 million was for the present financial year.
At the beginning of the month, the department committed itself to releasing more than R250 million to its suppliers and service providers, in keeping with its new policy to honour payments within 30 days. - Sapa