The Ministry of Health has disclosed that it owes private businesses amounts ranging from just P1,100 to as much as P155.7 million, with 53 companies currently awaiting payment for goods and services supplied.
Responding to a parliamentary question from Kgatleng West MP Dr. Unity Dow, Minister of Health Dr. Stephen Modise admitted that his ministry, like others, has been hit by payment delays due to Botswana’s ongoing financial crisis. He said while the ministry remains committed to paying suppliers within agreed timelines, this has not been possible because of the state’s liquidity challenges.
“With the help of the Ministry of Finance, my ministry is looking into every option for paying the service providers. Since it relies on the availability of funds and the state of the nation’s liquidity, I am unable to commit at this time on when all outstanding payments will be settled,” Modise told Parliament.
The Minister acknowledged that in some cases procurement was undertaken before funds were secured, citing urgent service delivery needs such as essential medication, urgent repairs to medical equipment, and infrastructure maintenance. He also pointed to weaknesses in internal planning and contract management processes, which he said the ministry is working to address through improved financial oversight and procurement planning.
Modise stressed that the ministry is prioritizing clearing overdue payments before taking on new procurement commitments, adding that available funds are being channeled towards settling debts.
This disclosure comes amid mounting concerns from suppliers and contractors who say delayed payments by government ministries are crippling their operations, especially small and medium-sized businesses that rely heavily on cash flow to survive.