Health Minister Aaron Motsoaledi disclosed on Wednesday that R9.1 million has been spent to date on litigation involving the National Health Insurance (NHI) Act.
Motsoaledi said his department was facing seven legal cases, which included five on NHI and two on the National Health Act.
“From October 2023 when the first counsel was briefed, the total amount paid is R9,696,679,99. There is no pending financial liability for any cost product since the single judgment that came out so far is under appeal,” he said.
Motsoaledi made the comment during the question and answer session in the National Assembly.
DA MP Michele Clarke had enquired whether Motsoaledi was responding about the total expenses incurred regarding litigation involving the National Health Insurance Act, including the estimated financial liability for any adverse cost order.
Motsoaledi said the department was using the same legal team to fend off the legal challenges.
“We have hired a team that deals with them. It is five senior counsel and seven junior counsel.”
Clarke asked about the justification to pay the large legal team when hospitals cannot afford to pay for patients or overtime for doctors.
She noted that President Cyril Ramaphosa had a small legal team compared to the Health Minister.
In response, Motsoaledi said their legal team was appropriate.
“The President’s (legal team) is for only one case, not seven. We are sued for seven cases and that is why this amount of money is for those who have been involved in litigation.”
He indicated that when the cases increase, the department will increase the number of legal counsels to match them.
He noted that the R9m paid for lawyers to defend the cases was a lot of money when doctors were not employed.
“You here honourable members, who are subsidised to stay on private medical aid for R70 billion, Why don’t you have the heart to believe that money must go to help the poor?”
He also South Africans on a medical aid get tax credits to the tune of R33 billion.
“It’s R103 billion rand that goes on to 14% of the population. Then you come here to me and complain about R9 billion,” he said.
“If you are not on private medical aids and being heavily subsidised, there won’t be any litigation because we won’t be asking for NHI. South Africans will be equal so please go and think about that very carefully.”
ACDP MP Steven Swart said litigation was expected regarding the controversial NHI Act.
“We understand the need for five seniors, seven juniors, given the constitutional arguments and the ACDP, like many others, has serious concerns about the constitutionality of the Act,” he said.
Swart also said the cost of litigation against the department was extremely worrisome and took away much needed health services, in particular medical legal claims, which as at last year was R75 billion and the legal cost would be hundreds of millions of rands.
“What is being done to reduce the number of medical legal claims against the department, which besides the fraudulent claims, we know there are many fraudulent claims, is often caused by overworked doctors and nurses who work under severe pressure and may act negligently in that regard,” he asked in a supplementary question.
Motsoaledi said the original question was about the NHI and Swart was asking about medical legal claims.
“Medical legal worries us, and you are correct, it takes money away from the health care system. Fraud was found to be the biggest part of this.”
