Netcare begins handover of hospital and clinics to Lesotho after partnership collapses

accreditation
0:00
play article
Subscribers can listen to this article
Netcare and the government agreed that the transfer of assets, equipment and stock would be overseen by an independent external auditor.
Netcare and the government agreed that the transfer of assets, equipment and stock would be overseen by an independent external auditor.
James Stent, GroundUp

Private hospital group Netcare said on Wednesday it has started handing over operations of the Queen Mamohato Memorial Hospital and four of its clinics in Maseru to the Lesotho government.

This follows a collapse of a partnership between the government and the Tšepong consortium that Netcare has a 40% stake in.

The government said the partnership, with was in its 13th year of an 18-year contract, would be terminated after it accusing Tšepong of noncompliance. Netcare, however, alleges that the state missed payments for services it was provided with.

"The GoL [government of Lesotho] has repeatedly reiterated that it has no intention of making these scheduled, contractual payments at this stage, and will only consider making payment after the PPP [public-private partnership] termination date of 31 August 2021," Netcare said.  

"In light of these circumstances, Netcare is no longer prepared to fund ongoing operations on behalf of the PPP… The refusal by the GoL to pay the outstanding fees clearly places an unreasonable expectation on suppliers to continue providing full services at a substantial level of commercial risk to their businesses."

Netcare and the government agreed that the transfer of assets, equipment and stock would be overseen by an independent external auditor.

It said media reports that it had already withdrawn from the hospital and the clinics were "factually incorrect". It said only property belonging to Netcare, which was not part of providing patient care, had been removed.

Netcare CEO Dr Richard Friedland said in the statement that the "care of patients will not be compromised".

"In financial terms, the contribution from the Lesotho PPP is not material to the Netcare Group’s earnings and there is no impact on any other parts of the Netcare business. Netcare will be handing over the hospital and the primary care clinics to the GoL as fully operational facilities," Friedland said.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
17.09
+0.8%
Rand - Pound
20.69
+0.4%
Rand - Euro
17.85
+0.4%
Rand - Aus dollar
11.66
+0.3%
Rand - Yen
0.13
-0.4%
Gold
1,783.32
+0.8%
Silver
22.35
+0.7%
Palladium
1,917.01
+1.6%
Platinum
1,044.50
+0.7%
Brent Crude
86.97
+3.1%
Top 40
68,564
0.0%
All Share
74,828
0.0%
Resource 10
73,434
0.0%
Industrial 25
90,489
0.0%
Financial 15
16,396
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders