Holomisa urges army to partner with private sector

The government wants the army to enter into agreements with the private sector to assist with its infrastructure development programmes and the maintenance of existing infrastructure. This, according to deputy minister of defence Bantu Holomisa, will come in handy for the health wing of the army, the SA Military Health Services (SAMHS), which is facing financial pressures. Speaking during an oversight visit at the 2 Military Hospital in Cape Town, Holomisa said the SA National Defence Force (SANDF) was underfunded because the government post-1994 started directing most of its budget towards social security, including social wage grants.

This has severely impacted the SANDF as it has been unable to adequately maintain and develop its infrastructure. “The military facilities in this country, including hospitals and bases, were once institutions that received significant attention and a substantial portion of the national budget. After 1994, the policy focus shifted toward social security rather than military security,” said Holomisa.

“That policy orientation inevitably affected the maintenance and upgrading of the massive infrastructure inherited from the previous dispensation. A considerable portion of that infrastructure consisted of military hospitals and health facilities, such as this one. The department of defence has therefore been placed under sustained financial strain in attempting to maintain ageing infrastructure while providing essential services to our members and veterans,” said Holomisa.

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“However, the Government of National Unity has consistently called for structured private sector participation in infrastructure development and maintenance,” he added. “It is therefore imperative that the leadership of the South African Military Health Service engages with the commanders of the SANDF to explore public-private partnership arrangements with credible private sector partners. Such partnerships could accelerate the recovery of SAMHS and allow us to develop modern, fit-for-purpose facilities equipped with up-to-date medical technology.” He said the SAMHS must take advantage of the GNU’s policy position around allowing its government entities and departments to secure public-private partnerships, which he said would reduce project delays, limit corruption risks, curb disputes over tenders and ensure timely delivery of infrastructure projects critical to national security.

Holomisa has also suggested that the government should look into how the Public Investment Corporation (PIC) is investing government employees’ pensions and whether it could assist with the maintenance and development of military infrastructure. “There is no reason why strategic portions of defence infrastructure, particularly hospitals and health facilities, cannot form part of long-term, secure property investments,” said Holomisa. “If the PIC is able to develop premium commercial properties in major economic nodes, there is no reason similar investment models cannot be applied to military hospitals. Funds such as the Isibaya Fund should prioritise infrastructure that guarantees sustainable returns, such as hospitals, universities, clinics and technical colleges, rather than exposing pensioners’ savings to high-risk ventures with questionable outcomes.”

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