Health minister defends nearly R10 million legal spend on NHI court battles

Motsoaledi says there would not be a need for litigation if members of parliament didn't enjoy heavy subsidies on private medical aid and if NHI were a reality.
The Department of Health has spent R9.7 million on legal fees defending the National Health Insurance (NHI) fund and the NHI Act.
This is according to Health Minister Aaron Motsoaledi, who was addressing questions during the Social Services Cluster question-and-answer session in Parliament on Wednesday.
Mostoaledi said there are overall seven cases against the controversial fund, which is designed to give all South Africans access to quality healthcare paid for by taxpayers.
Five of these cases involve the fund itself, and two involve the act.
R9.7 million in legal fees
'We are using the same team of lawyers, and so we might not be able to separate the two. So, we have hired a team that deals with them,' Motsoaledi said.
'It's five senior counsel and seven junior counsel, and 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 order since the single judgement that came out so far is under appeal.
Mostsoaledi was addressing Democratic Alliance (DA) member of parliament (MP) Michele Clarke, who asked what the total litigation expenses incurred to date regarding the act are.
ALSO READ: Court rules president must explain how he decided to sign NHI Bill into law
'I would like to ask the minister how he justifies paying such a large legal team, given that hospitals cannot afford food for patients or overtime for doctors, and given that even the president has a legal team of only about a third of the health minister,' Clarke asked Motsoaledi.
The minister said the department regarded the size of the team as appropriate and that the president is only sued for one case, not seven.
He said they didn't determine the amount and that those who have been involved in litigation will know how expensive senior counsel is.
'When the cases increase, we increase the number because we have to match them.'
MP's medical aid subsidies
Motsoaledi also said the millions spent defending the NHI were nothing compared to the billions in medical aid subsidies that MPs enjoy.
'You here, honourable members, are subsidised to stay on private medical aid for R70 billion; why don't we have the heart to believe that money must go to help the poor?
'It doesn't stop there; any South African who's on a medical aid, including you, gets tax credits to the tune of R33 billion… Then you come here to me and complain about R9 million; are you not trying to hide things here?'
ALSO READ: Motsoaledi announces 1 650 new healthcare jobs and R1.3bn to be spent on hospital equipment
He said if MPs were not on private medical aids and being heavily subsidised, there would not be any need for litigation, and the department would not be asking for NHI.
'South Africans would be equal, so please go and think about that very carefully.'
Call for decisiveness
In response, ActionSA's Dr Tebogo Letlape asked the minister why he doesn't take away the subsidies and tax benefits since they are under his purview.
Furthermore, he asked why the Medical Schemes Act and the NHI Act exist separately.
'Why can't there be decisiveness in terms of doing what needs to be done, where the new proposal replaces the existing proposal? Why are we creating two parallel mechanisms? Where's the courage to merge the two?' Letlape asked.
Motsoaledi said he understood that Letlape had always advocated for abolishing medical aid and replacing it with the NHI since he was the president of the Health Professions Council of South Africa.
'That's the decision this house can take if you have the heart to take it,' the minister said, addressing the MPs.
NOW READ: Over 8 000 SA healthcare jobs lost – and more could follow – after US Pepfar aid cuts

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