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Nqobile Tshili Chronicle Reporter
MPILO Central Hospital is owed $16 million by its clients, a development that has forced it to engage debt collectors in an effort to recover the funds. The hospital’s chief executive officer Dr Lawrence Mantiziba yesterday said the health institution was facing serious financial challenges as government had released inadequate funds.
He said that four months into the year, less than a tenth of money that was allocated to the hospital in the 2014 budget had been released.
As a result of the cash squeeze, the hospital is now struggling to purchase drugs and food for patients.
“We are now in May and we have only received $130,000 from the government against the $1.5 million budget that was approved for us,” said Dr Mantiziba.
He said the $1.5 million budgetary allocation fell short of what they proposed to the government as part of their bids.
He said the hospital owed suppliers and other service providers $2.8 million which was affecting them in their operations.
“Companies no longer want to take our orders anymore. They demand cash up-front, making it difficult for us to offer efficient services,” said Dr Mantiziba.
He said as an institution they understood that the government was facing financial constraints, but said funding of referral hospitals must be prioritised as they attend to all complications form districts and provincial hospitals. Mpilo’s financial woes are not peculiar.
United Bulawayo Hospitals (UBH) and Ingutsheni Hospital in Bulawayo have also indicated that funds that were allocated to them in the 2014 national budget fall short of their operational expenses.
UBH was allocated $1.5 million, but it has a $2.6 million debt while Ingutsheni was allocated $1.2 million and owes suppliers $1.1 million.
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