Citizen Reporter
Reporter
3 minute read
15 Jul 2021
4:59 am

Netcare terminates partnership with Lesotho hospital over nonpayment

Citizen Reporter

In terms of the PPP agreement, Netcare is entitled to suspend its services due to a material default by the government, which in this case was triggered by the persistent lack of payment.

Picture: iStock

Netcare has started handing over operations at the Queen Mamohato Memorial Hospital and its four primary care clinics in Maseru to the Lesotho Government as a result of the public private partnership (PPP) agreement being prematurely terminated, with effect from 31 August. The handover has been brought forward, however, following the ongoing nonpayment of fees due to the Tšepong consortium by the government. “The contracted monthly unitary fees owing since March total R275 million,” said Netcare chief executive Dr Richard Friedland. “This includes debt repayments due to the Development Bank of SA, staff and nursing salaries and payments to suppliers.”...