However, the Consortium wants the government to immediately compensate it for the termination of the contract. It further alleges that the government would have to fork out way more than just the M3 billion which Finance Minister
Health Minister Semano Sekatle announced last month that the government had resolved to cut ties with the Consortium which has run QMMH since it opened its doors to patients in 2011.
The parasitic relationship between the government and the Consortium has been a cause for concern for many years with the Consortium allegedly gobbling half of
Mr Sekatle said the government felt it could no longer continue its 18-year
In
However, the Consortium has been under fire for allegedly fleecing the government and flouting the tenets of the agreement over the years. Its operations have also been hamstrung by ubiquitous staff strikes for salary increments since 2012.
Mr Sekatle said although the government and the consortium had differed over many issues, the final straw was the latter's decision to fire 345 striking nurses and nursing assistants at the institution.
The nurses went on strike on
QMMH nurses said they have not been awarded any increments since 2012 when the government and the
According to the
Health ministry Principal Secretary (PS) Khothatso Tsooana subsequently wrote to the Consortium informing it of the government's decision to terminate the contract.
A
"Tsepong is concerned about the media announcements by the government of
"Tsepong is concerned more specifically with regard to the following public messages: government does not support the dismissal of the nursing staff who participated in the illegal strike action and does not agree with actions taken by Tsepong management; government has requested the Minister of Health and Minister of Finance to terminate the PPP agreement; The contract should be terminated due to a parasitic relationship... and the government will re-employ dismissed nursing staff to the hospital as soon as the PPP Agreement had been terminated.
"These statements by the government to all major media within
"Tsepong is therefore entitled, among other things, to accept the government's repudiation, cancel the agreement forthwith and claim damages. Tsepong is also entitled to terminate the PPP Agreement because a government default prevails whilst undisputed amounts, that are contractually overdue to Tsepong, exceed the termination threshold. We look forward to receiving your election regarding the way forward to ensure the stability of the project whilst the parties agree on the most appropriate manner to hand back the project to government."
In his termination letter, PS Tsooana had accused the Consortium of breaching its contractual obligations in terms of the PPP agreement.
Among other things, Mr Tsooana accused the Consortium of turning away emergency patients and refusing to admit patients referred from district hospitals. He also accused the Consortium of reducing bed capacity and occupancy.
Minister Sekatle also accused the Consortium of firing the striking nurses without first consulting or informing the government. The government has since resolved to rehire the fired nurses and nursing assistants and place them in state-run health facilities with effect from
However, Tsepong wants the government to shoulder the blame for the nurses' strike.
"The government has failed to conduct an affordability review within the agreed time or at all. The illegal nurses' strike was instituted by aggrieved nursing staff, as a result of the government of
She said there was no evidence to back the government's claims that QMMH had refused to admit patients referred to it by the district hospitals. She also denied claims that there was a high nurse to patient ratio which compromised services to patients.
"Our records do not show any delay in the treatment of patients. Tsepong has been maintaining a ratio of 6 patients to 1 nurse which is lower than the acceptable industry standard of 8 patients to 1 nurse.
"On
Minister Sekatle yesterday acknowledged receipt of the Tsepong letter. He said they were consulting with their finance teams over the amount to be paid to the Consortium.
"We are also setting up our legal team because definitely the matter will end up in court," Mr Sekatle said in a brief interview with the
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