City Power, Gauteng officials locked in meeting to prevent power cut to hospitals over debts

City Power says it has stopped its technicians from disconnecting several hospitals including Charlotte Maxeke Johannesburg Academic Hospital for the city and the provincial government to "find one another on the payments matter" dispute.

"City Power and the Gauteng provincial government senior officials are [locked] in meetings today to resolve the [issue of] debts owed by provincial health institutions," said spokesperson Isaac Mangena.

"The entity was due to cut off power supply to Charlotte Maxeke Hospital today [Thursday] over a R40m debt, [and] South Rand Hospital tomorrow [Friday] over a R3m debt which they promised to pay on Monday but failed to do so.

"The disconnection of customers over electricity debt comes as the last resort for City Power, after knocking at the doors reminding the institutions of their debt obligation. City Power is in the ICU in terms of its revenue, with billions of rand in the red.

"We are hoping that we will find each other on these debts, especially after the intervention by CoGTA MEC Mr Mzi Khumalo and finance MEC Mr Jacob Mamabolo," said Mangena.

On Wednesday, Gauteng health department spokesperson Motalatale Modiba issued a statement on the matter, saying six invoices amounting to R32,474,056.39 have been paid to City of Joburg from April to September 2023 towards the settlement of Charlotte Maxeke's debt.

Modiba said an additional invoice of R4.9m has been finalised for payment this week, and the last invoice of R5.2m was currently being processed for a purchase order to be created before the money is released.

"These amounts excluded interest raised as the department is of the view that the interest has been raised even on invoices that have long been settled, leading to incorrect amounts being claimed."

Modiba also said an amount of R13m was settled between August 7 and November 23 for Helen Joseph Hospital.

At Rahima Moosa Mother and Child Hospital (formerly known as Coronation Hospital), Modiba said the R4m debt was paid in invoices dated October 19 and 26, which have been received by the city.

Modiba said regarding the South Rand Hospital, the department received an invoice of R2,086,080.30 from the City of Johannesburg, which he said was "way above the normal charges that would be received, [and] this delayed the processing thereof pending clarity".

"This amount is now due to be processed and paid with the current pay run. There is an amount of R625,807.84 which is being processed for the creation of a purchase order to effect payment," said Modiba.

He said the debt of R2.6m owed to City of Johannesburg by the Chris Hani Baragwanath Academic Hospital was current and that an invoice was received this month and is currently being processed for the creation of a purchase order to effect payment.