The South African Medical Technology Industry Association (SAMED) has taken the unprecedented step of issuing an open letter to the President of the Republic of South Africa and the Premier of Gauteng, urgently requesting intervention in the escalating financial crisis within the Gauteng Department of Health.
In the letter, SAMED highlights that the Department currently owes medical technology suppliers more than R700 million for essential, legitimate medical devices and equipment used daily in lifesaving and life-sustaining patient care. Despite the critical nature of these supplies, many companies have remained unpaid for extended periods, forcing local businesses, many of them small and medium-sized enterprises, to shoulder the financial burden of the public healthcare system at great risk to their own sustainability.
The letter raises concerns about governance failures, lack of accountability, and the absence of meaningful engagement from senior provincial officials, despite numerous attempts by industry and national health authorities to resolve the matter. SAMED warns that such systemic dysfunction undermines healthcare delivery, threatens jobs, weakens supply chains, and damages South Africa’s economic reputation with international partners.
SAMED has called for decisive leadership and proposes the following immediate actions:
- Settlement of verified outstanding invoices
- An independent inquiry into governance and payment systems
- A transparent and sustainable payment framework to protect the integrity of procurement processes
SAMED remains committed to working collaboratively with the government to stabilise the sector and ensure continuity of patient care.
