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Municipality unable to account for millions paid by hospital

Questions have been raised and a forensic probe launched after more than R17m, apparently paid by Pietermaritzburg’s Northdale Hospital to the Msunduzi municipality for an electricity account, seems to have vanished from the City’s billing system, reports The Witness.

On Monday, the hospital was told it had 24 hours to cough up for an overdue R12m electricity bill or face disconnection, but the facility’s officials insisted that millions of rands had already been paid towards the debt last year, and was able to show proof of deposits.

Local Municipality CEO Nelisiwe Ngcobo and the municipality’s Operation Qoqimali team had visited the hospital on Monday to demand payment, but officials told them payment toward the debt had been made between September and November 2025.

“The total amount paid was just more than R17m for outstanding debt. Our current consumption is up to date and they are now threatening to cut the hospital off,” the hospital said.

“If the amounts paid do not reflect on their system, then they should ask themselves where the money has gone to. They were even shown the account number into which the amounts were paid,” said a source.

The Witness was shown invoices reflecting payments exceeding R17m, including more than R4.6m paid on 19 September, two separate payments of R4.1m and R4.6m on 15 and 31 October, and a further R3.7m payment made on 27 November.

Earlier this week, Msunduzi Municipality had confirmed that as part of its ongoing disconnection campaign targeting government departments, officials had visited Northdale Hospital to serve notice of a possible electricity and water disconnection over unpaid municipal accounts.

Msunduzi spokesperson Ntobeko Mkhize said the City has referred the matter for forensic investigation and internal verification processes to establish the status, allocation, and authenticity of the payments presented.

“After engagements between the municipality and the hospital management, supporting documentation and proof of payments were presented for consideration.

“However, at the time of the engagement, the payments in question had not reflected on the municipality’s billing system, necessitating further verification and reconciliation processes. This matter is being treated with the utmost urgency.

“Detailed reconciliation processes are under way, including verification of account details, payment allocations, and system records,” Mkhize said, adding that in the meantime, the disconnection will be paused until the invoices are verified and reflected in the City’s billing system

She said the City is owed about R319m by various government departments and institutions.

Provincial Health Department spokesperson Ntokozo Maphisa said the department was also investigating the matter. “To the best of our knowledge, there are no outstanding electricity utility payments owed to Msunduzi Municipality. We will, however, engage with the municipality to establish the facts surrounding the matter,” he said.

 

The Witness article – Where did the R17m go? Northdale Hospital payment dispute triggers forensic probe (Open access)

 

See more from MedicalBrief archives:

 

Power cut at KZN Health HQ over hospital’s R6m bill

 

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