EASTERN CAPE NEWS - The Eastern Cape Department of Health is in the midst of a deepening financial crisis, owing a staggering R269m to municipalities across the province - an amount that is placing immense pressure on local governments already battling to keep basic services running.
This revelation emerged following a parliamentary question posed by the Democratic Alliance (DA), with Premier Oscar Mabuyane confirming the figure.
According to the DA, this growing debt burden threatens the delivery of essential services such as water, electricity, and sanitation in dozens of financially distressed municipalities.
'Reallocation of funds'
The premier attributed the department's dire financial position to the reallocation of funds to cover ballooning medico-legal claims.
However, critics argue that this explanation fails to address the operational consequences municipalities face in the absence of the funds they are owed.
Among the hardest-hit municipalities are Nelson Mandela Bay (owed R48m), Buffalo City (R40m), and King Sabata Dalindyebo (R35m).
Other notable debts include R20m to Alfred Nzo District Municipality, R19m to OR Tambo District, and nearly R19m to Matatiele and Raymond Mhlaba combined.
Smaller municipalities have not been spared. Many are reportedly owed amounts ranging from hundreds of thousands to several million rands - amounts significant enough to cripple service delivery in already strained communities.
Hospital power cut
The real-world consequences of the department's failure to pay its bills were starkly illustrated on Monday 6 May, when power was cut to the Sundays River Hospital.
The disconnection stemmed from an unpaid electricity bill of R4.4m the department owes the Sundays River Valley Local Municipality.
Despite prior warnings issued to both the Department of Health and the Department of Public Works, no action was taken to prevent the outage.
Electricity was only restored after DA Shadow MEC for Health, Jane Cowley, intervened and secured a commitment from the department to settle the outstanding debt.
Lives endangered
“This is more than just poor accounting - this is mismanagement that endangers lives,” said Retief Odendaal, DA Shadow MEC for Cooperative Governance and Traditional Affairs (Cogta).
“Failing to pay within the mandated 30-day period under the Public Finance Management Act is not only illegal, but morally unacceptable.”
The DA has called for the Eastern Cape Department of Health to be placed under administration, citing a total of more than R5b in unpaid accruals as from January.
The party has also instructed its municipal councillors to engage with local officials to ensure that talks are happening - and action is being taken - regarding outstanding provincial debts.
“Residents of the Eastern Cape deserve better than a government that cannot manage its finances or protect public services,” Odendaal said. “This crisis cannot continue unchecked.”
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