PSC Raises Alarm Over Gauteng Health Department’s R5.1 Billion Unpaid Invoices to Suppliers
PSC raises alarm over Gauteng health department’s R5.1 billion unpaid invoices to suppliers. The Public Service Commission (PSC) has raised concerns about the Gauteng health department’s persistent failure to pay suppliers timeously after it emerged that over R5.1 billion in invoices has not been paid on time. Information provided by the PSC to the Gauteng provincial legislature’s portfolio committee on Finance showed that at the end of the first quarter of 2025/26 (April-June 2025) no department was able to fully pay service providers within the required 30 days. The provincial health department remains the major culprit in terms of the highest for late and non-payment of the service providers since it only paid 11% of its invoices on time, according to the commission. The PSC stated that between April and June this year, the department paid about R2.45 billion after 30 days and R2.66 billion had not been paid. The challenges faced by the department were attributed mainly to not having a chief financial officer (CFO) by the PSC.
Gauteng Health Department Struggles with Persistent Payment Delays
The Gauteng health department has come under fire for its ongoing issues with paying suppliers on time, a problem that has worsened over recent quarters. According to the PSC’s latest report to the provincial legislature’s finance portfolio committee, the department managed to pay only 11% of its invoices within the mandatory 30-day period during the first quarter of the 2025/26 financial year, from April to June 2025. This left a staggering R5.1 billion in unpaid or late invoices, with R2.45 billion settled after the deadline and R2.66 billion still outstanding.
This is not a new issue for the department, which has consistently ranked as the worst offender among Gauteng’s provincial departments for late and non-payments. In the previous quarter, from January to March 2025, the department recorded 51% of invoices older than 30 days unpaid, amounting to over R6.58 billion in total delays, including R2.46 billion paid late and R4.12 billion not paid at all. By the end of the 2024/25 financial year in March 2025, the PSC revealed that the department had failed to pay 30,914 invoices totalling R4.86 billion, highlighting a pattern of financial mismanagement that has escalated over time.
Earlier data from August 2024 showed the department owing R1 billion after failing to pay 19,212 invoices within 30 days, a figure that ballooned to R4.8 billion by May 2025, affecting thousands of businesses. These delays have been linked to cash flow problems, with the department claiming in May 2025 that it spent 99% of its adjusted budget for the 2024/25 year, prioritising older invoices but still falling short on new ones due to the transition to the new financial year.
The PSC has attributed much of the blame to the absence of a chief financial officer, a key position that has remained vacant for an extended period. The department has since advertised the CFO post, along with other roles, in hopes of resolving these systemic issues. The commission expressed optimism that filling this role could improve financial management, but stressed the need for more support and resources directed at the health department, which is the main contributor to these payment failures across the province.
Impact on Small Businesses and Service Delivery
The non-payment crisis is severely affecting small, medium, and micro enterprises that rely on timely payments to stay afloat. These businesses provide essential services to the health department, such as medical supplies, equipment maintenance, and other support functions. The PSC warned that continued delays threaten the sustainability of these enterprises, which could lead to job losses and reduced capacity to deliver goods and services.
Democratic Alliance member of the provincial legislature Madeleine Hicklin highlighted the human cost, noting that suppliers dependent on 30-day payments are struggling to pay salaries, cover costs, and keep operations running. “This is severely affecting businesses rendering services to the department and solely dependent on the 30-day payment of invoices to pay their employees’ salaries, pay their suppliers, and keep their doors open. This will also affect patients’ access to health care services as the department’s service providers are constrained,” she said.
ActionSA has also voiced dismay, calling the situation a sign of shocking financial mismanagement and urging improved fiscal discipline. The party’s concerns echo broader fears that small businesses could face closure, leading to higher unemployment in an already strained economy.
The department’s payment woes have ripple effects on healthcare delivery. With suppliers unpaid, there are risks of shortages in critical areas like medicines, equipment, and maintenance, potentially compromising patient care. The PSC observed that most delays stem from recurring internal control deficiencies that departments have failed to address, despite ongoing monitoring.
Broader Provincial and National Context
Gauteng is not alone in this struggle, as the PSC has flagged similar issues across government departments nationwide. In April 2025, the commission lamented the general failure to pay invoices within 30 days, a problem that persists despite regulations. The National Treasury, in July 2025, called for investigations into officials who fail to ensure timely payments, emphasising accountability.
Within Gauteng, five departments failed to pay all suppliers on time in May 2025, with health paying only 21% promptly. The provincial treasury revealed that health owed R367 million at that point, a figure that has since grown. Critics have also raised alarms over leadership issues, including a tripled security budget while the department claims insufficient funds for vacancies, overtime, and supplier payments.
The department has acknowledged the problem, stating it is evaluating financial strategies to improve cash flow, including better expense forecasting and seeking extra budgetary support. However, with a reported R4.8 billion shortfall projected by December 2024, the crisis shows no signs of easing.
DA to Monitor CFO Hiring Process
The DA has vowed to closely watch the hiring of the new CFO to ensure a competent candidate is appointed. Hicklin stressed the importance of this role in turning around the department’s finances and preventing further harm to businesses and healthcare services. The party plans to hold the department accountable, pushing for transparency in the recruitment process.
The PSC has committed to ongoing monitoring and condemning non-compliant departments, calling for more resources to support major offenders like health. As Gauteng grapples with these challenges, the focus remains on resolving payment backlogs to protect small businesses and maintain essential services.
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