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AfriForum believes that concerns regarding the nature and scale of spending on marketing of the National Health Insurance (NHI) constitute another reason why the system is likely to fail. This follows a call made on Sunday by Health Minister Aaron Motsoaledi for the Special Investigating Unit, the Auditor-General, and the Public Protector to investigate allegations of massive expenditure – amounting to R182 million – on marketing initiatives, including that of marketing the NHI system.

According to a News24 report, the Department of Health awarded contracts to two companies to promote various health campaigns, including the marketing of the NHI system. The report further alleges that funds for this marketing campaign were diverted from critical health programmes and that there were various irregularities in the appointment of the two specific companies.

According to Louis Boshoff, AfriForum’s Spokesperson on health, these questions confirm the organisation’s warnings that a massive NHI budget could potentially lead to corruption and mismanagement. “Economists and the Treasury agree that funding the NHI system will require several hundred billion rand. If there is already talk of irregular expenditure before the NHI Act has even come into effect, there is all the more reason to suspect that the eventual NHI fund will become a breeding ground for corruption.”

Boshoff further states that marketing the NHI system is unnecessary in any case. “The only way the system should be ‘marketed’ is by providing people with quality healthcare. Since the department is failing to do that, they are resorting to billboards and TV advertisements,” Boshoff adds.

AfriForum emphasises that although investigations must be concluded before any malpractices can be confirmed, the mere fact that investigations are deemed necessary is a warning sign in itself.

Earlier this year, AfriForum instituted legal proceedings against the President and the Minister of Health to challenge the constitutionality of the NHI Act in court. This case will proceed once judgment has been delivered in a separate case concerning the public participation process for the NHI Bill.

Issued by AfriForum