MK Party calls for Motsoaledi's resignation over R180m NHI advertising spend - IOL

Health Minister Aaron Motsoaledi faces mounting scrutiny over more than R180 million in reported health and NHI communication contracts, with the matter now set for investigation by oversight bodies.

The MK Party has called for Health Minister Aaron Motsoaledi to resign and for a nationwide parliamentary inquiry into health procurement after reports that more than R180 million was spent on communication contracts linked to the National Health Insurance (NHI) and other health campaigns.

MK Party spokesperson Sifiso Mahlangu said the party was demanding political accountability over what it described as procurement irregularities and the alleged diversion of funds from critical healthcare programmes.

According to reports, the Department of Health paid R146.4 million to KMTV Media and R35 million to Dots Design Agency.

Mahlangu said R103 million had allegedly been taken from the primary healthcare GP contracting grant, known as the CUPS initiative, which is intended to place doctors in rural and under-serviced public clinics.

He said R65 million had instead been ringfenced for advertising and billboards, while other funds were allegedly taken from programmes dealing with HIV/Aids, tuberculosis, child and youth school nutrition and health promotion.

“What makes this corruption particularly disgraceful is where the money was stolen from,” Mahlangu said.

The MK Party also questioned the procurement process used under tender NDOH 36/2023-24.

Mahlangu alleged that bidders were appointed at R1,620 per transaction without a financial cap, while subsequent payments included invoices of more than R4 million and purchase orders worth R52 million.

He also questioned the involvement of departmental spokesperson Foster Mohale, alleging that he chaired the tender committee that awarded the work and later signed delivery notes and authorised payments to the service providers.

The Department of Health has referred the allegations to the Special Investigating Unit (SIU), Auditor-General and, if necessary, the Public Protector to establish the facts.

The department has also rejected claims of fraudulent activity in the contracts.

Motsoaledi and Deputy Minister Joe Phaahla have backed the referral.

Mohale said the independent institutions should investigate the allegations.

“The minister and the deputy minister have, hence, decided to approach the SIU, the Auditor General, and if necessary, even the Public Protector, to get to the root of this claim,” Mohale said.

The Portfolio Committee on Health has noted the allegations and said it would consider inviting the department to brief MPs on the contracts and the steps being taken to establish the facts.

AfriForum has also raised concerns about the reported spending, saying it reinforced its opposition to the NHI.

The organisation said the reported R182 million expenditure raised questions about how a much larger NHI fund would be managed if the system were implemented.

AfriForum spokesperson on health Louis Boshoff said the reported spending supported the organisation’s concerns about possible corruption and mismanagement under the NHI.

“Economists and the Treasury agree that funding the NHI system will require several hundred billion rand. If there is already talk of irregular expenditure before the NHI Act has even come into effect, there is all the more reason to suspect that the eventual NHI fund will become a breeding ground for corruption,” Boshoff said.

Boshoff also questioned the need to spend money marketing the NHI.

“The only way the system should be ‘marketed’ is by providing people with quality healthcare. Since the department is failing to do that, they are resorting to billboards and TV advertisements,” he said.

AfriForum said investigations should be completed before any malpractice is confirmed, but argued that the need for investigations was itself concerning.

The MK Party wants Motsoaledi to resign and is calling for Parliament to investigate procurement across the National Department of Health and all nine provincial health departments from 2019 to date.

Mahlangu also called for the Hawks and SIU to freeze active payments to KMTV Media and Dots Design Agency and investigate officials who approved the purchase orders.

“The SIU cannot be used as a shield for executive incompetence and political complicity,” Mahlangu said.

“The MK Party will not sit idly by while the healthcare system collapses and public money meant to save lives is converted into a slush fund for PR agencies and compromised officials,” Mahlangu said.