The KwaZulu-Natal provincial government has launched an investigation into the state-funded Durban and Coastal Mental Health facility which is teetering on the edge of bankruptcy and has deteriorated to such a level that some fear it could lead to the province's own 'Life Esidimeni' crisis.
The Sunday Times Daily reports that the NPO, funded primarily by the provincial departments of Health and Social Development, interfaces with more than 600 000 patients every year who either live in its hostels, or attend 'daycare'. Its recent financials show it is R6m in the red, 'technically insolvent', is being sued for about R2.4m for an unpaid bill from a service provider, and those attending the AGM last month were told there is only money for salaries for the next six months.
While some put the blame on a new board, elected only a year ago, it said it has unearthed wrongdoing by the previous board and inherited a financial mess. The old board stepped down after disruptions and threats of legal action by a group of 27 parents, relatives and legal guardians who alleged the 78-year-old NPO was being mismanaged by board members who had dominated positions since 2012.
The attorney representing this group, Sipho Shezi, then became the chairperson of the new board, which terminated the services of the usual auditors. Shezi said the new board, acting on recommendations from the provincial Department of Health, had instigated a forensic investigation into historic 'improprieties and shortcomings'.
[link url="hhttps://www.timeslive.co.za/sunday-times-daily/news/2020-11-04-kzns-largest-mental-health-facility-is-an-esidimeni-in-waiting/"]Sunday Times Daily report (Subscription required)[/link]