Lesotho Government cancels 18 year deal with Netcare
The Lesotho government has cancelled its 18-year contract with Netcare Hospital Group for a multimillion-rand deal to build and manage Lesotho’s biggest hospital. What was supposed to be a model public-private partnership (PPP) has now been cancelled due to allegations against Netcare. – BusinessLive (5 April 2021)
Netcare and its local partners Tsepong borrowed 800-m maloti from the Development Bank of Southern Africa (DBSA) to build the R1.2-bn Queen Mamohato Memorial Hospital. The government guaranteed the loan and paid R400-m towards the construction to reduce the cost of the debt and fees.
“The government has accused Netcare and local partners of violating the contract to provide clinical services and ‘bleeding’ the country through huge unitary fees. It says the company worsened the crisis at the hospital by firing 300 nurses who were on a pay strike for six weeks. Netcare, however, said it diligently kept its end of the bargain and will fight the decision.”