CAPE TOWN – Health Minister Dr Aaron Motsoaledi has come under fire from the Democratic Alliance for failing to present detailed costing for the National Health Insurance (NHI) while pursuing what the opposition calls “unsanctioned tax increases” to fund the controversial healthcare scheme.
DA Health Spokesperson Michéle Clarke accused the Minister of “doubling down” on his funding plans without proper consultation with National Treasury, raising questions about the financial viability and governance of the proposed universal healthcare system.
Clarke criticised Motsoaledi’s approach to funding the NHI through four primary sources: shifting funds from national government departments and provincial grants, reallocating medical scheme tax credits, implementing payroll taxes, and introducing surcharges on personal income tax.
“The Minister failed to answer the DA’s question as to whether he had consulted National Treasury on his tax plan,” Clarke stated. She emphasized that the NHI cannot be funded without a money bill that only Treasury can introduce.
The controversy deepens amid revelations about the ongoing oxygen plant tender scandal. Investigative outlet amaBhungane reported on Tuesday that Motsoaledi had failed to fully transfer the Pressure Swing Adsorption tender from the Independent Development Trust (IDT) to the Development Bank of South Africa (DBSA) as previously promised.
The R152 million contract, awarded to Maziya On-Site Gas Systems for installing 10 oxygen plants, remains under IDT management. Additionally, the IDT failed to present a requested forensic report on the tender to the parliamentary portfolio committee on public works and infrastructure.
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These developments have intensified concerns about corruption and mismanagement within the health department. Clarke pointed to ongoing problems at facilities like Tembisa Hospital as evidence of systemic issues that could undermine the NHI’s effectiveness.
“The Minister seems completely unable to consider how this problem would not disappear under the NHI,” Clarke said, warning that officials could continue facilitating corruption without consequences under the new system.
He said the DA supports universal healthcare in principle but opposes the current NHI implementation, arguing it lacks proper accountability mechanisms. Clarke further called for the Department of Health to introduce an amendment withdrawing the legislation and conduct proper public consultations on achieving universal healthcare access.
The NHI Bill, which aims to provide free healthcare to all South Africans, has faced criticism from various quarters over its funding model, implementation timeline, and potential impact on existing medical schemes. The government maintains that the system is necessary to address healthcare inequality and improve access for millions of South Africans currently unable to afford private medical care.
