Gauteng Hospitals Owe R2.9 million on Over-priced Diesel

Over priced diesel for Gauteng hospitals
March 23, 2015

Gauteng hospitals owe R2.9 million to companies that supply diesel for boilers, tractors and back-up generators.

This is revealed in a written reply by Gauteng Health MEC Qedani Mahlangu to my questions in the Gauteng Legislature.Jack Blom DA Gauteng Shadow MEC for Health

Companies Owed

The Gauteng Health Department buys diesel from a number of companies in terms of a contract by National Treasury.

The following companies are owed money:

  • Kiarah Chemicals cc                     R936 835
  • One Line Project Solutions cc          R491 150
  • Kebaratile General Trading             R29 227
  • Afric Oil Pty Ltd                             R373 219
  • General Energy Systems Pty Ltd     R1 065 358

 

I am aware of cases where late supply of diesel has led to generators failing after power cuts, and boilers with no steam to provide heat and sterilise surgical instruments.

Discounted Rates

I am also concerned that the department pays R12.38 per litre of diesel, which is a bit more than you would pay at a local garage.

Surely a discount rate could have been achieved as part of the diesel tender?

This is yet another example where the department is getting poor value for money and there are supply disruptions because of non-payment.

The department should pay its bills and ensure a reliable diesel supply for hospitals.

 

Media enquiries:

Jack Bloom MPL

DA Gauteng Shadow MEC for Health

082 333 4222

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