N Cape health owes big

R1.5BN: DA IS AFRAID ITS HUGE LITIGATION BILL WILL AFFECT THE BUDGET

An unknown number of cases have already been settled out of court.

The Northern Cape department of health is facing litigation amounting to R1.2 billion and over R340 million in notices of the intention to litigate.

OFM News reported on a statement issued by the Democratic Alliance’s Andrew Louw, which said he was concerned that this would affect the department’s budget and that the money could have been better used for service delivery.

In a written statement to OFM News, the department revealed that in 2018, about 19 summonses had been issued against it. It could not state how many had been settled out of court, how many claims it had paid out, or the total value of these.

Cases were settled out of court based on merit, as well as the medical and legal expert evaluations that came with each one.

The department had made good progress and saved money through the Medico-Legal Project Team, which dealt with some of the cases.

It would not say what the cases were about, but stated that many related to incidents that happened several years ago, like the cerebral palsy outbreak in 2004. It was alleged children born in hospitals contracted the illness owing to medical negligence.

“The department has since established clinical governance structures in facilities to ensure adherence to health protocols and proactive preventative measures are being put in place,” the statement read. Meanwhile, it has emerged that more than R1.2 billion has been spent on the controversial Kimberley Mental Hospital.

The project, which started in 2005 and was due for completion by the end of 2007 at the cost of R291 million, is considered among the seven worst-run projects in the province. The implementing agents did not comply with procurement processes and failed to meet targets.

According to a recent auditor-general report, the failure of this project is largely due to poor project management by the provincial department of health, which led to several delays.

They failed to take action against the initial contractor in 2007 when indications of slow progress, poor workmanship and incomplete remedial work were identified.

That report further states this department is among the top three contributors to irregular expenditure in the province.

In the 2017-18 fiscal year, it incurred irregular expenditure of R412 million, due partly to implementing agents procuring on behalf of the department without following processes.

In her budget in February Premier Sylvia Lucas said the hospital was 98% complete and would be operational by July. However there must now be questions about whether it will be in operation anytime soon. – OFM News

Kimberley Mental Hospital still not completed