Cancer machine firm owed R6m
THE company at the centre of the controversy over the supply of radiotherapy machines to the Department of Health in Kwazulu-natal says it is owed around R6 million by the department – but insists it will not pursue legal action.
“The total amount outstanding to Tecmed Africa remains at R4 766 666.63 while interest on that is R1 260 247.99. This relates to the maintenance contract on the oncology machines purchased from us in 2009 for use at Addington Hospital. We have sent several letters of demand for payment but have decided not to take it further as it is against our policy to sue government,” chairperson Werner Begeré told The Sunday Tribune.
However, a source close to the controversy around the tender awarded to Tecmed, claims the company may fear loss of government business if it pursued legal action. “It’s the kiss of death to take on government if you want business from them. They don’t take kindly to threats of legal action and if your business depends on government orders, they will stop using your services if you challenge them legally.”
Asked about this, Begeré declined to comment, saying only his company would not sue the department over non-payment. Instead, he says, Tecmed would be willing to repair the oncology machines to restart cancer treatment in the province.
The department terminated the services of Tecmed in 2012 amid allegations of irregularities over the procurement of the machines.
Health MEC Dr Sibongiseni Dhlomo also accused the company of supplying refurbished machines, saying it would be reported to Treasury to investigate.
Dhlomo later reinstated the maintenance contract for the machines for a few months before former head of department, Dr Sibongile Zungu, ordered an abrupt end, citing contractual concerns.
However, Begeré denies any wrongdoing.
“Criminal cases were allegedly opened against Tecmed Africa by the Department of Health in KZN, however not a single case number quoted is legitimate nor has Tecmed Africa any knowledge of the case. All allegations are unfounded and untrue.”
The latest development comes as the SA Human Rights Commission mulls the department’s response to its damning report which found it and Dhlomo had violated the rights of cancer patients by not providing adequate treatment and care.
In its response, the department has committed to repairing the oncology machines and to employ oncologists to work at its health facilities, but failed to provide timelines on solutions.
Begeré has warned against the department using third parties to service its machines.
“Due to the nature of oncology equipment, such systems require regular servicing due to high levels of radiation which destroy components designed to monitor all parameters and automatically stop functioning in order to ensure patient and user safety.
“The department tried various other approaches, even utilising third party service providers. This proved unsuccessful.”
The department is in an ongoing dispute with Tecmed and does not want to deal with the matter via the media.