Question NW195 to the Minister of Health
01 March 2024 - NW195
Mashabela, Ms N to ask the Minister of Health
What (a) are the reasons that the Gauteng Department of Health failed to use over R2.6 billion of its budget in the 2022-23 financial year and (b)(i) total amount did each provincial health department fail to spend in their budgets in the 2022-23 financial year and (ii) what are the reasons that each provincial health department failed to spend all of its allocated budget?
Reply:
Responses as received from the provincial departments of health.
a) (i) Gauteng Department of Health underspent the total allocated budget with R2.7 billion of which R937 million was for provincial equitable share and R1,7 billion for conditional grants,
The reasons for underspending are -
- Late receipt of invoices and claims from suppliers that are subjected to a verification process.
- The reduced number of nursing students enrolled for the academic year and delays in the submission of Non-Profit institution's claims.
- Claims for the South African Cuban Doctor programme was received and subjected to reconciliation and review and could not be processed for payment at year-end.
- Slow construction and contractors abandoning sites due to poor contractors performance.
- Underspending on conditional grants was due to the unavailability of contracts, and probity audit processes towards procurement of high-value medical equipment that could not be delivered and paid at year end.
- Underspending was also incurred due to price reductions of antiretroviral drugs, non-contracting of general practitioners performing voluntary medical male circumcision (VMMC) and shortage of condoms within the country.
Rollover application of R582.2 million was submitted and R279 million was approved as follows;
- National Tertiary Services Grant R515.8 million requested and R226.8 approved
- District Health Services Grant (HIV/AIDS component R38.4 million requested and R32.8 approved and
- Statutory Human Resources component R27,9 million requested and R19.4 approved
b) (i) (ii) The following table reflects the details in this regard:
|
Name of the province |
Underspending in 2022/2023 FY R’million |
Reasons for underspending |
|
Eastern Cape |
R62,2 R31.7 Conditional grants R30.5 Voted funds |
Delays in the payment of medico-legal settlement due to Trust registration delays by plaintiff attorneys. The rollovers amount to R24,8 million for the National Tertiary Services Conditional Grant and R6,1 million for the District Health Programme Conditional Grant (Comprehensive HIV Component) has been approved. |
|
Free State |
-R’4.4 R85 Conditional grant -R89 voted funds |
The underspending on the grant totalling R85 million was as a result of the process of reconciliation for payment at year end and could not be finalised. The roll over amount of R84 million on Health Revitalization Grant was requested and approved to be spend in 2023/2024 |
|
Kwa Zulu Natal |
R’000 |
The Province spent the total allocated budget in 2022/23 financial year. |
|
Limpopo |
R103,5 R49.3 Conditional grant R54.2 voted funds |
The unspent budget of R103 million is attributable to delayed deliveries of medical equipment caused. The Department successfully secured R78 million through roll over request to be paid during 2023/2024 financial year. |
|
Mpumalanga |
R25,3 R12.8 conditional grants R12.5 Voted funds |
Department experienced delays in the procurement of equipment due to revised Public Procurement Regulations. |
|
Northern Cape |
R141,4 R131.3 conditional grants R10.1 Voted funds |
Underspent funds due to delay in the supply, delivery, installation and commissioning of the linear accelerator. National Health Insurance grant rollover amount was requested and R47,484 million was approved to be spent in 2023/24 financial year. National Health Revitalisation Grant underspent by R82,211 million, attributed by the delay in the monitoring and implementation of infrastructure projects. |
|
North West |
R4.8 R200.6 conditional grants -R209 voted funds |
Delays in submission of invoices by service provider, late delivery of medical equipment (Catheterization and Lab Thyroid Stimulating Hormone). Rollovers were requested and approved to be spent in 2023/24 financial year, Health Facility Revitalisation Grant - R178,9 million, National Tertiary Services Grant - R1,9 million and National Health Insurance Grant -R15 million |
|
Western Cape |
R180 R14.4 conditional grants R165.6 voted funds |
Savings on approved post list due to delays in the filling of funded vacancies and in-year attrition rates. Delayed in the implementation of contracts with training providers resulting in training that could not be implemented as planned. The use of covid-19 rapid ag tests instead of the more expensive laboratory based PCR tests and decrease in audit fees and legal fees. |
END.