HomeNews UpdateMillions spent on NHI despite Act’s suspension

Millions spent on NHI despite Act’s suspension

The Department of Health has spent R1.3bn on the NHI project in the 2025/26 financial year even while the implementation of the Act remains suspended pending legal challenges, reports Die Burger.

These figures were analysed when officials addressed MPs in the NCOP’s Select Committee on Social Services.

Health DG Thembisile Xulu said the NHI’s budget was R1.4bn, of which R1.3bn had already been spent: project management (R7m), affordable medicine (R43m) and R1.3bn for “financing of the project”. 

The department’s total national budget for all goods, services and salaries nationally was R65bn. Xulu said it was important to implement the NHI in phases.

When the committee had raised concerns about and asked for clarity on the rollout of the NHI – and why there appeared to be limited evidence of impact for South Africans – the department had said that it was on pause until the Constitutional Court judgment, reports BusinessTech.

The scheme is facing a multitude of court challenges, with the Constitutional Court due to rule on one of the more foundational issues: whether the laws themselves are valid.

If it rules that the correct processes were not followed in enacting the NHI Act, it will send the process back years.

If the court rules that the processes were valid and the laws remain in effect, it will trigger the next wave of litigation waiting in the wings.

In either case, implementation of the NHI will face further delays.

In February, President Cyril Ramaphosa had undertaken not to put any part of the NHI Act into operation until the finalisation of the court cases.

But while a moratorium effectively halts its legal implementation, Health Minister Aaron Motsoaledi said his department will continue preparing for implementation.

 

BusinessTech article – NHI hits a roadblock in South Africa (Open access)

 

Die Burger article – Regering bestee reeds R1,3 mjd. aan NGV-projek (Restricted access)

 

See more from MedicalBrief archives:

 

Some NHI implementation ‘full force ahead’ despite pause – Minister

 

Unpacking the Health Department's response to NHI ad spending

 

NHI scheme will open doors to corruption

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