{"id":6331,"date":"2021-11-27T11:04:48","date_gmt":"2021-11-27T11:04:48","guid":{"rendered":"https:\/\/www.africa-press.net\/lesotho\/all-news\/netcare-comes-out-with-guns-blazing"},"modified":"2021-11-27T11:33:54","modified_gmt":"2021-11-27T11:33:54","slug":"netcare-comes-out-with-guns-blazing","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/lesotho\/all-news\/netcare-comes-out-with-guns-blazing","title":{"rendered":"Netcare comes out with guns blazing"},"content":{"rendered":"

Africa-Press – Lesotho. <\/strong><\/span>By Thoboloko Nt\u0161onyane MASERU \u2013 The Netcare Hospital Group (Pty) Ltd issued a statement on March 24 which takes aim at the T\u0161epong shareholders over strained relations and the government of Lesotho over the delayed payments.<\/p>\n

This follows the government\u2019s decision to cut ties with the T\u0161epong following its move to fire its 265 nursing staff who had engaged in a 40 day industrial<\/p>\n

action on account of the \u201clow\u201d salaries which they argued were last restructured in 2012 and some shareholders who decried impropriety. It has refuted the previously recorded 345 of the nursing staff which were given<\/p>\n

the marching orders. \u201cT\u0161epong is a thinly capitalised entity without access to working capital, and therefore unable to meet financial obligations when monthly payments by<\/p>\n

GoL [Government of Lesotho] are delayed. During these prolonged periods of non-payment \u2013 sometimes up to five consecutive months \u2013 Netcare provided the interest-free bridge funding to<\/p>\n

sustain the financial position of T\u0161epong. \u201cWhen Netcare recovered amounts due to it, once T\u0161epong\u2019s had the funds to settle its obligations to Netcare, the company was accused of<\/p>\n

financial impropriety which naturally is not conducive to maintaining relations, especially when Netcare\u2019s financial assistance ensured the viability of the project.<\/p>\n

Netcare\u2019s financial support of T\u0161epong in effect means that Netcare is a 100% contributor on the downside and only a 40% beneficiary on the upside. \u201d \u201cShareholder relations became further<\/p>\n

strained when unsubstantiated allegations were made by some of the shareholders that they have not benefited financially from the PPP project. These utterances do not recognise<\/p>\n

that M65 million advanced by the Development Bank of South Africa (DBSA) to ensure their participation, has been settled in full. It also does not recognise the substantial management fees paid for procurement of equipment and<\/p>\n

Netcare\u2019s concession to share 50% of its monthly management fees which to date, yielded the shareholders aggregated earnings in excess of M11.5 million.<\/p>\n

\u201cWhile T\u0161epong has been trading solvently, T\u0161epong\u2019s ability to declare dividends and<\/p>\n

maintain liquidity has been severely constrained by the poor payment history by GoL and poor support, by some members of the T\u0161epong board, to act in the interest of the company<\/p>\n

and take action to collect fees owing by GoL,\u201d says Dr Chris Smith, the Finance General Manager at Netcare. The statement further attributes the souring of relations of<\/p>\n

Netcare and its shareholders and nursing staff to the government\u2019s delayed payments. The statement goes on to say the remedies which were explored to bring solution proved futile over citing the dismissed court application at the<\/p>\n

Commercial Court in 2020 wherein they sought \u201cto place T\u0161epong under judicial management\u201d but the Netcare said it had appealed the matter. Meanwhile the Directorate on Corruption and Economic Offences (DCEO) investigators has<\/p>\n

seized some computers at the hospital last week to investigate on alleged misconduct at that hospital. This the statement says it had complied with the<\/p>\n

Directorate request last year where it sought the computers and the documentation on the PPP agreement for their investigations. The group has expressed dismay over the raid saying \u201cNetcare was surprised by the<\/p>\n

unannounced raid by the DCEO at the QMMH on 19 March 2021 to remove documents and computers, without any basis of contraventions of any legislation being put to<\/p>\n

T\u0161epong. \u201d On March 17, the task team of cabinet Ministers formed of the Ministers of Health, Finance, Development Planning, Labour and Employment, Education and Training,<\/p>\n

Tourism, Environment and Culture and Law and Justice announced the government\u2019s decision to part ways with the company citing the long strained relationships<\/p>\n

from the onset of the public private partnership (PPP) agreement between the T\u0161epong and the government. T\u0161epong gobbles M550 million annually from the Ministry of Health to run the Queen<\/p>\n

\u2018Mamohato Memorial Hospital (QMMH). The group further said concerning the proposed termination of the PPP contract, Netcare<\/p>\n

said it learnt through the media reports of the government\u2019s intention to end the 18 year PPP contract which is in the 13th year saying it will \u201ckeep engaging GoL on these issues in an effort to avoid any disruption to<\/p>\n

service delivery\u201d. The statement goes on to say that Netcare plans to challenge the \u2018default notice\u2019 received on March 18 from the GoL which is reported to have defaulted.<\/p>\n

\u201cNetcare\u2019s role in the PPP is to provide and deliver all management, clinical and related<\/p>\n

services, equipment and information technology (IT), laundry, cleaning, security and gardening services, amongst others. In addition, Netcare is responsible for the nurses\u2019 and<\/p>\n

emergency services training and for the establishment of relations with external training institutions to facilitate peer review and support of medical practitioners.<\/p>\n

T\u0161epong as principal contractor of the PPP mainly has the obligation for the employment of staff members. \u201d \u201cNetcare has led the establishment of this pioneering PPP and is privileged to be<\/p>\n

serving the Basotho people through the provision of quality healthcare. The PPP project has brought a range of specialised services to the Basotho people, unprecedented in the<\/p>\n

country\u2019s history, and significantly elevated the range and quality of healthcare services accessible by the citizens of the Kingdom of Lesotho,\u201d charges Dr.<\/p>\n

Smith The Netcare Hospital Group (Pty) Ltd, commands the majority shareholding within the public private partnership (PPP) between the Government of Lesotho and T\u0161epong (Pty) Ltd, a company that runs the QMMH and<\/p>\n

the four filter clinics in Maseru. T\u0161epong\u2019s shareholders comprise of Netcare, which holds a 40% stake within the consortium while the remaining 60% shareholding is held by Afrinnai Health (Pty)<\/p>\n

Ltd 20% \u2013 South African based company, and the local companies comprising of; Excel Health Services (Pty) Ltd with 20% shareholding, D10 Investments (Pty) Ltd<\/p>\n

(D10) which has 10% shareholding, and the Lesotho based Women Investment Company (Pty) Ltd (WIC) with 10% stake.<\/p>\n

For More News And Analysis About Lesotho<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Lesotho. By Thoboloko Nt\u0161onyane MASERU \u2013 The Netcare Hospital Group (Pty) Ltd issued a statement on March 24 which takes aim at the T\u0161epong shareholders over strained relations and the government of Lesotho over the delayed payments. This follows the government\u2019s decision to cut ties with the T\u0161epong following its move to fire […]<\/p>\n","protected":false},"author":84,"featured_media":6330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8,16],"tags":[233,246,245,557],"class_list":["post-6331","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","category-twitter","tag-africa-press","tag-africa-press-lesotho","tag-lesotho","tag-netcare"],"yoast_head":"\nNetcare comes out with guns blazing - Lesotho<\/title>\n<meta name=\"description\" content=\"By Thoboloko Nt\u0161onyane MASERU \u2013 The Netcare Hospital Group (Pty) Ltd issued a statement on March 24 which takes aim at t ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/lesotho\/all-news\/netcare-comes-out-with-guns-blazing\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Netcare comes out with guns blazing\" \/>\n<meta property=\"og:description\" content=\"By Thoboloko Nt\u0161onyane MASERU \u2013 The Netcare Hospital Group (Pty) Ltd issued a statement on March 24 which takes aim at t ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/lesotho\/all-news\/netcare-comes-out-with-guns-blazing\" \/>\n<meta property=\"og:site_name\" content=\"Lesotho\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2021-11-27T11:04:48+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-11-27T11:33:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/lesotho\/sites\/62\/2021\/11\/img-61a21789793a0.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"478\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/lesotho\/all-news\/netcare-comes-out-with-guns-blazing#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/lesotho\/all-news\/netcare-comes-out-with-guns-blazing\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/lesotho\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Netcare comes out with guns blazing\",\"datePublished\":\"2021-11-27T11:04:48+00:00\",\"dateModified\":\"2021-11-27T11:33:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/lesotho\/all-news\/netcare-comes-out-with-guns-blazing\"},\"wordCount\":976,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/lesotho\/all-news\/netcare-comes-out-with-guns-blazing#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/lesotho\/sites\/62\/2021\/11\/img-61a21789793a0.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Lesotho\",\"Lesotho\",\"Netcare\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\",\"twitter\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/lesotho\/all-news\/netcare-comes-out-with-guns-blazing#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/lesotho\/all-news\/netcare-comes-out-with-guns-blazing\",\"url\":\"https:\/\/www.africa-press.net\/lesotho\/all-news\/netcare-comes-out-with-guns-blazing\",\"name\":\"Netcare comes out with guns blazing - 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