23 November 2012

South Africa: Department of Health Allocated Additional Funds to Address Accruals

press release

The Gauteng Department of Health (GDH) has been allocated R2.4 billion additional funding from the province to address accruals that have become a burden on the Gauteng Provincial Government's (GPG) budget.

The announcement was made by Finance MEC Mr Mandla Nkomfe during the tabling of the 2012/2013 Adjustment Budget and the Medium Term Budget Policy Statement at the Gauteng Provincial Legislature today.

"These funds are allocated to the department to comprehensively deal with its financial management challenges and also assist in the implementation of the Health Turnaround Strategy. This will ensure that service delivery mandate of the department to deliver quality health care to the citizens of Gauteng remain a priority and continues without disruptions," MEC Nkomfe said.

"The adjustments budget takes the province closer to the end of 2009-2014 term of governance and is therefore an essential part of consolidating the priorities and finalising critical deliverables identified at the beginning of the term," the MEC explained.

GPG's total main appropriation has been adjusted upwards by 4.8 billion; from R69.3 billion which was presented in March to R74.1 billion. The main recipient of the significant adjustments allocation is GDH.

It is followed by the Gauteng Department of Roads and Transport, which received additional funding of R940.2 million to cover, amongst other things:

Gautrain: R861 million has been granted for the Gautrain Rapid Link Grant. These funds will be transferred to Gautrain Management Agency to continue with ensuring efficient management and implementation of the Gautrain project.

Driver License Testing Centres (DLTC): An additional allocation amounting to R29.1 million in relation to the upgrading and maintenance of the Driver's License Testing Centers (DLTCs) is allocated to the department to enhance service delivery.

Improving financial management in tight fiscal environment

The MEC called on all employees of the province to exercise prudent financial management, adding that this is non-negotiable. "MECs must hold their Accounting Officers (as CEOs of the Departments) responsible for ensuring that finances in their respective departments are managed in a sound manner and all financial legislations are adhered to. Making payments to suppliers within the legislated 30-days is a non-negotiable and HODs must be held accountable for not complying with this aspect of the law," the MEC said.

The MEC added: "that financial management in the province is a responsibility that should be discharged by all those that have been tasked with the responsibility of stewardship of the financial resources, this includes all Accounting Officers and all Chief Financial Officers in the province,"

Furthermore, the Gauteng Provincial Treasury is working with all departments to improve financial management. "A special attention is being given towards clearing all accruals in the province; I should however hasten to state that this is a process not an event," the MEC said.

Highlights of the adjustments:

Gauteng Department of Agriculture and Rural Development (GDARD) is allocated an additional R6 million for the infrastructure portfolio to accommodate payment of accruals from the previous financial years and to roll out urgent repairs and maintenance to existing infrastructure.

Department of Sport, Art, Culture and Recreation receives additional funding of R19 million to cover costs related to the build-up and hosting of the African Cup of Nations in Gauteng.

A total of R25 million has been suspended from the Department of Finance and allocated to Health, Community Safety, GDARD and Education following the decentralisation of procurement and human resources functions.

Department of Social Development is allocated an additional amount of R30 million for the infrastructure programme to pay accruals from the previous financial years and implementation of other projects;

An amount of R10 million has been made available to the Department of Infrastructure Development for the development of the Gauteng Integrated Infrastructure Master Plan to guide planning and implementation in line with Gauteng 2055 as well as the design and modeling of the planning house.

The Gauteng Department of Health (GDH) has been allocated R2.4 billion additional funding from the province to address accruals that have become a burden on the Gauteng Provincial Government's (GPG) budget.

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