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By Kwanele Dhladhla
The Public Accounts Committee (PAC) has instructed the Ministry of Health to address the financial conundrum, which has resulted in E1.3 billion overdrawn balances in the Phalala Fund suspense account, to avert the loss of lives which could have been otherwise saved by efficient management of the fund.
The intervention was made during the appearance of the Ministry of Health before PAC on Wednesday, where it was disclosed by the Auditor General, Timothy Matsebula, that the Special Care Medical (Phalala) Fund Account had an overdrawn balance of E1.3 billion, with no activities of income and expenditure.
The AG noted that the Phalala Fund account had been depicting an overdrawn balance for over five years, which remains uncleared by the Ministry. He further observed that the outstanding debts and/or unpaid invoices (bills) from the service providers for the Special Care Medical Aid (Phalala) Fund were not disclosed or reported in the Financial Statements.
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“As such, the debt inventory was not brought into the books of accounts,” the AG reported.
Principal Secretary (PS) Khanya Mabuza submitted that the Ministry has since upscaled the localisation of services to control the Phalala debt.
“In the meantime, the ministry has sent a request to the Ministry of Finance to draft new regulations for the Phalala Fund,” said Mabuza.
Somntongo MP Sandile Nxumalo wondered whether the situation where Emaswati were being rejected by doctors in foreign hospitals, especially in South Africa, had finally been resolved.
The PAC also learnt through an official that the Ministry of Finance has no budget for the settlement of the overdrawn balance from the fund.
“There is no budget to settle the funds owed by Phalala Fund, which has been requested by the ministry. There would have to be programmes whose funds are diverted if it were to be settled,” he said.
Zombodze Emuva MP, Ntando Mkhonta, mentioned that a lot of Emaswati made applications to receive medical assistance through the fund but were being rejected. He claimed that under the Phalala Fund, only children were now being assisted.
However, the PS emphasised that the Phalala Fund continues to play a crucial role in saving the lives of Emaswati. He informed the PAC that he has personally been to some of the health centres in South Africa for negotiations for Emaswati to be treated.
“There is a need to relook at the issue of how Phalala Fund is operated. We owe the doctors and have made efforts to have them engaged. It would be very inhumane to cut off the patients receiving continuous treatment.
Even though there is a need to re-examine the efficiency of the Phalala Fund, we are not saying patients under the fund will be cut off,” Mabuza assured.
The Financial Controller said they submitted a supplementary budget. However, it was discovered that there would not be enough savings to settle the overdrawn balance. debt.
Director of Health Services Dr. Velephi Okello submitted that when the fund started operating, it was implemented through a suspense account, which was later changed to being budgeted for. She mentioned that it was this point that E1.3 billion was overdrawn.
“We are now working on a budget which has since been depleted; hence, we are not in a position to settle the overdrawn balance at this point,” Okello said.
MP Nxumalo advised the ministry to address the challenge to avert the situation which happened in 2017, where a lot of Emaswati died due to being cut off from treatment, especially in South African hospitals.
“The E1.3 billion balance is too high. During past investigations, it was discovered that the government issued a blank cheque which allows doctors to charge as they please without being made to account,” he disclosed.
Zwane added, “The debt must be settled for Emaswati to get medical assistance. At least pay in instalments of E100 million.”
Matsanjeni South MP Sabelo Ndlangamandla requested the ministry to give assurance that Emaswati would be assisted to get help through the Phalala Fund.
“I need assurance that Emaswati are being helped through the Phalala Fund. I am worried that just like the shortage of drugs, the ministry says drugs have been delivered, yet the actual situation on the ground is that there are no drugs,” submitted Ndlangamandla.
Mabuza said some patients had made submissions but had not attended due to the low absorption rate caused by a lack of funds.
“The cases are being absorbed into the Phalala Fund, but the people are dying while still in the queue. In the past, we have learnt that people die because they are taken to the hospital at late stages of the sickness. The situation is hopeless, and people are dying due to the lack of Phalala Fund,” said Mabuza.
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The Financial Controller clarified that the E1.3 billion was not a debt but a balance that should be cleared from the suspense account with savings. However, the official from the Ministry of Finance emphasised that the balance in the fund’s account should be acknowledged when drafting their budget.
“If we are going to allocate funds to settle the account, it must be done appropriately through the budgeting process. The ministry must own the account,” he added.
