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Gauteng hospitals owe R2.9 million on overpriced diesel

Health Department pays R12.38 per litre of diesel, which is a bit more than you would pay at a local garage.

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 the Democratic Alliances (DA) Gauteng Shadow Health MEC Jack Bloom in the Gauteng Legislature.

“The Gauteng Health Department buys diesel from a number of companies in terms of a contract by National Treasury,” said Bloom.

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.

“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,” Bloom added.

@scoobieW

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