Question NW1286 to the Minister of Health
19 May 2023 - NW1286
Mashabela, Ms N to ask the Minister of Health
In light of the revelations that more than R700 million was spent irregularly each year on security contracts for Gauteng hospitals alone, what (a) is the status of hospitals in other provinces with regard to irregular monies spent on security contracts each year in each province and (b) are the reasons that he has not considered and/or implemented the recommendation to insource all cleaning and security services in hospitals and facilities in the public sector?
Reply:
(a) Limpopo, Free State, Western Cape, and Mpumalanga Provinces do not have irregular expenditure associated with provision of security services. Mpumalanga Department of Health does not have the budget nor expenditure incurred, the security contracts are centralised at Mpumalanga Department of Safety and security in the province.
Eastern Cape incurred R34.9 million irregular expenditure in 2019/20 Financial year (FY), R108.5 million in 2020/21 FY and in 2021/22 FY an amount of R76.1 million. In total for the past three years the Department incurred R219.6 million irregular expenditure on security contracts. There were delays in the appointment of a new service provider as were investigations for the previous contract, however, a new contract has been appointed in 2022/2023 financial year.
The Northern Cape committed R28.4 million irregular on security service in 2020/21 FY, R191.5 million in 2021/22 FY and R208 million in 2022/23 FY. The total expenditure incurred amount to R427.9 million for the past three years on security services due to month-to-month contracts and exceeded the allowed threshold for variation. The procurement process was interrupted by local business forum in several attempts to source new contractor.
North West spent R524.1 million in 2021/22 FY and R583.7 million in 2022/23 FY. The total irregular expenditure incurred on security services amount to R1.1 billion for the past two years, the irregular expenditure is in the process of condonations.
Kwazulu Natal Department of Health incurred R1.377 billion irregular expenditure on average on security services due to month to month contracts after the contracts expiry dates. There were appeals by the bidders hence the Department had to continue with month to month with service providers those contracts have expired.
(b) The National Department of Health has considered insourcing of cleaning and security services in health facilities through National Health Council however it remains the competency of Provincial Health Department to implement the operational services.
The Free State, Limpopo, and Mpumalanga insourced the cleaning services. Eastern Cape, and North West partially outsourced the cleaning services in some areas where there are budget pressures to insource.
The Eastern Cape has partially implemented insourcing as the feasibility of insourcing security services, is unaffordable in some areas. Once the financial position improves it will be reconsidered. The Limpopo, Northern Cape and North West outsourced the security services due budget constraints. The security contract in Mpumalanga Department of Health is centralised at the Mpumalanga Department of Safety and security in the province hence contracts are managed at that level.
KwaZulu-Natal outsourced the security and cleaning services, the insourcing of all services for the department is part of the strategic and operational plan, the implemantation is delayed by budget cuts by impacting negatively on compensation of employees economic classification. However, the provinces opted to implement insourcing in phases for various services.
END.