{"id":863996,"date":"2026-06-19T13:00:00","date_gmt":"2026-06-19T11:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=863996"},"modified":"2026-06-19T12:55:49","modified_gmt":"2026-06-19T10:55:49","slug":"another-r1-billion-down-the-drain-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/863996\/another-r1-billion-down-the-drain-in-south-africa\/","title":{"rendered":"Another R1 billion down the drain in South Africa"},"content":{"rendered":"\n<p>After spending over R1 billion on efforts to rescue South Africa&#8217;s flagship military hospital, the government is now considering building a new facility.\u00a0<\/p>\n\n\n\n<p>This proposal has sparked outrage in Parliament, where MPs are demanding explanations regarding the expenditure on the refurbishment of 1 Military Hospital in Thaba-Tshwane.\u00a0<\/p>\n\n\n\n<p>Despite the significant investment, large sections of the hospital remain incomplete more than two decades later.<\/p>\n\n\n\n<p>\u201cThe Joint Standing Committee on Defence has expressed serious dissatisfaction with the change in direction regarding the long-stalled repair and maintenance project (RAMP) at 1 Military Hospital in Tshwane,\u201d said Parliament Co-Chairperson of the committee, Phiroane Phala.<\/p>\n\n\n\n<p>Forensic investigations have revealed allegations of corruption, tender irregularities, and wasteful spending\u2014but years later, no one has been held accountable.\u00a0<\/p>\n\n\n\n<p>After decades of delays and repeated promises, the hospital\u2014once considered one of the best military healthcare facilities in the region\u2014still cannot offer the full range of specialised services expected of a Level 4 military referral hospital.<\/p>\n\n\n\n<p>\u201cThe committee finds it inexplicable that two government departments entrusted with such a critical project can operate without sufficient alignment and information sharing,&#8221; Phala said.<\/p>\n\n\n\n<p>&#8220;This lack of alignment has contributed significantly to the current challenges.\u201d<\/p>\n\n\n\n<p>A controversy arose when the Department of Defence and Military Veterans (DODMV) informed Parliament&#8217;s Joint Standing Committee on Defence (JSCD) that it was reevaluating the long-standing Repair and Maintenance Programme (RAMP).&nbsp;<\/p>\n\n\n\n<p>Additionally, the department is considering the option of building a completely new military hospital.\u00a0<\/p>\n\n\n\n<p>The South African National Defence Force (SANDF) and the Department of Public Works and Infrastructure (DPWI) briefed the committee on this matter on 12 June.<\/p>\n\n\n\n<p>\u201cWhile we appreciate the rationale behind reassessing the project, it is deeply concerning that <strong>more than R1 billion has already been invested in the repair and maintenance programme without the work ever being completed<\/strong>,\u201d said Phala.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">20 years of &#8220;milking a cow&#8221;<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/06\/Untitled-design-2026-06-18T171044.297.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/06\/Untitled-design-2026-06-18T171044.297-1024x576.png\" alt=\"\" class=\"wp-image-864030\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/06\/Untitled-design-2026-06-18T171044.297-1024x576.png 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/06\/Untitled-design-2026-06-18T171044.297-300x169.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/06\/Untitled-design-2026-06-18T171044.297-768x432.png 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/06\/Untitled-design-2026-06-18T171044.297-1536x864.png 1536w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/06\/Untitled-design-2026-06-18T171044.297.png 1600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>The refurbishment programme was initiated after a parliamentary oversight visit in 2005, with construction work starting in 2006. However, issues related to the project date back even further.<\/p>\n\n\n\n<p>The renovation project, which was initially estimated to cost R232 million, has faced numerous challenges, including delays, redesigns, rising costs, and allegations of mismanagement.&nbsp;<\/p>\n\n\n\n<p>By March 2011, over R431 million had already been spent, yet crucial areas of the hospital remained unfinished.&nbsp;<\/p>\n\n\n\n<p>In 2021, Parliament expressed concerns about the ongoing project, stating that there appeared to be no end in sight.<\/p>\n\n\n\n<p>\u201cWe find it extremely problematic that the Ramp that started in 2005\/2006 financial year is yet to be concluded,&#8221; said the former co-chairperson of the committee, Elleck Nchabeleng, at the time.<\/p>\n\n\n\n<p>&#8220;It seems that the project is turning into a milking cow with no end in sight, which negatively affects the fiscus.\u201d <\/p>\n\n\n\n<p>The committee also flagged the drawn-out refurbishment phase and what was, at the time, 29 months of work with little progress.<\/p>\n\n\n\n<p>The committee also expressed concern about the department&#8217;s rising medical outsourcing costs due to project delays.\u00a0<\/p>\n\n\n\n<p>\u201cThe committee\u2019s concerns are heightened by the cost escalations \u2013 on one hand by construction, and on the other, the cost of medical outsourcing,\u201d Nchabeleng said at the time.<\/p>\n\n\n\n<p>It was reported that from the financial years 2016\/17 to 2019\/20, the department spent R138.7 million, R177.8 million, R130.3 million, and R182.4 million, respectively.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>After spending over R1 billion on efforts to rescue South Africa&#8217;s flagship military hospital, the government is now considering building a new one.<\/p>\n","protected":false},"author":127,"featured_media":864029,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[25620,1916,24689],"class_list":["post-863996","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-1-military-hospital","tag-parliament","tag-thaba-tshwane"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/863996","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/127"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=863996"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/863996\/revisions"}],"predecessor-version":[{"id":864099,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/863996\/revisions\/864099"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/864029"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=863996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=863996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=863996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}