Director responds to rumours that AbaQulusi Private Hospital has run out of funding
With the construction of the AbaQulusi Private Hospital recently coming to a standstill, residents began to speculate that the project developers may have run out of money.
“This is nothing more than a rumour,” said Mr Mlotshwa.
He went on to explain that the project was funded in its entirety by the Industrial Development Corporation of South Africa (IDC). The funding received from the IDC is divided into three parts: construction, equipment and working capital.
“We haven’t touched the working capital component as we are not operating yet. We have currently spent one third of our equipment funding. We have ordered more equipment but it will only be delivered and paid for once we are closer to opening. As far as construction funding is concerned, the contractor issues an invoice to me, after I confirm that I have seen the invoice, it is sent to the IDC and the IDC pays the contractor directly. There was a delay in payment from the IDC to the contractor when the man handling the project resigned and left behind a backlog of paperwork. This has been explained to the contractor, who fully understands and is still onsite busy with work. We have not run out of funds. There was just a delay in payment to the contractor from the IDC.”
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