This week’s news has been full of discussion about whether the Public Investment Corporation, which manages the Government Employee Pension Fund assets, should fund aspects of public health, such as hospital infrastructure renewal and refurbishment. Here’s a comprehensive summary of the various views published in the media.
MedicalBrief provides a thorough summary of the department’s financial situation, the Minister of Health’s proposals, and some responding views.
Two experts call the idea ‘ridiculous,’ and they provide their reasons in an article in the Citizen.
The South African Institute for Race Relations says the proposal shows the Department of Health still cannot say how much the National Health Insurance Fund will cost. It is, therefore, in an ‘untenable’ position.
Finally, Zirk Gous, from the Association for the Monitoring and Advocacy of Government Pensions write in a letter to The Star, published in 7 November 2024:
“Dear Minister Aaron Motsoaledi
We are a group of past and present state officials who contributed to the Government Employees Pension Fund GEPF .
The Public Investment Corporation PIC invests the funds on the strength of a mandate by the GEPF.
The Cabinet had approved that PIC funding may be used for funding the National Health Insurance NHI , public health infrastructure and hospitals. The GEPF is not national savings but the contributions of thousands of present and past state employees over decades. It is not up for grabs by the state; communism does not exist in South Africa. The Cabinet does not have the authority to approve the use of PIC funding for the NHI and public health infrastructure. That right vests in the PIC, based on a risk analysis and only if the mandate from the GEPF allows it. When you took the matter to the Cabinet for approval, you abused your power as a minister and violated our Constitution.
Minister, we have an alternative suggestion for funding the NHI: two pension funds exist where the contributions come from national, provincial and municipal office bearers: the Political Office Bearers Pension Fund for national and provincial members of the legislature and the Municipal Councillors Pension Fund. Why don’t you put your pension at risk and convince the two funds to avail the R10 billion needed?
PS: We commend Deputy Finance Minister David Masondo, who is also the chairperson of the PIC board of directors, for rejecting your idea. Will he be strong enough to withstand the pressure?