Question NW972 to the Minister of Health
24 March 2025 - NW972
Clarke, Ms M to ask the Minister of Health
(1) (a) What measures have been put in place to ensure that public resources of the National Health Laboratory Service (NHLS) are safeguarded; (2) whether the former Executive Officer of the NHLS paid the R22 million ordered by the court; if not, (a) on what date will the payment be made and (b) what steps have been taken to ensure that the payment is made; if so, on what date was the payment made; (3) whether he has found that pension monies deducted from employees have been consistently been paid over to the Government Employees Pension Fund; if not, what actions are being taken to rectify the specified mismanagement, ensuring that employees receive their full pension entitlements; if so, what measures is his department putting in place to ensure that employees’ concerns are addressed transparently and promptly?
Reply:
- (a) The NHLS Board and Management have strengthened internal control systems. An external investigation and audits were conducted, and all recommendations have been fully implemented. The NHLS maintains a proactive internal audit and risk department to combat fraud and corruption. Furthermore, an independent external service provider manages a confidential Tip-Off line, ensuring ongoing vigilance and integrity in all operations.
- The former CEO has not paid the R22 million judgment debt granted in favour of the NHLS on 13 September 2024, (a) the former CEO filed and served a notice of leave to appeal to the Constitutional Court after the Labour Appeals Court denied her request for leave to appeal on 5 February 2025 and (b) the NHLS obtained a writ of execution on 12 November 2024, instructing Alexander Forbes Retirement Fund, as the administrator of the NHLS pension fund, to withhold R1.7 million from her pension fund. Confirmation was received from Alexander Forbes that this amount will be paid to the NHLS, as the former CEO has reached retirement age and the pension funds are now due and payable. Additionally, a writ of execution will be obtained for the sale of her movable and immovable property to satisfy the remaining balance of the judgment debt once the R1.7 million is paid to the NHLS.
- The NHLS has confirmed that pension deduction from employees had been consistently paid to the Government Employees Pension Fund. The NHLS has never missed paying pension monies to the Government Employees Pension Fund.
Upon the transfer of Forensic Chemistry Laboratories (FCL) employees, they were allowed to choose to either continue with GEPF or change to Alexander Forbes. Only 11 employees chose Alexander Forbes. However the FCL employees were unable to access the system to process the two pot withdrawals. Following a series of engagements between GEPF, NDoH, and NHLS management, employees have been able to process their requests as of 10th of March 2025, except for those whose contributions are part of the section 14 transfer from GEPF to Alexander Forbes. There are ongoing engagements with the parties involved to fast-track the transfer.
END.