The Gauteng department of health’s multimillion-rand infrastructure projects, including the R90 million project to upgrade Kopanong Hospital in Vereeniging, have come to a screeching halt due to crippling budget cuts.
According to Xolisani Galada, the department’s deputy director-general for infrastructure development, the infrastructure budget was slashed from over R1 billion in the previous financial year to R783 million in the 2025-26 financial year.
Key hospital projects among those affected by the cuts
Other affected projects include the R72 million refurbishment of Sterkfontein Psychiatric Hospital in Krugersdorp and urgent upgrades at Rahima Moosa Mother and Child Hospital in Coronationville.
The latter is grappling with crumbling infrastructure, inadequate facilities and lack of critical services such as an ICU and blood bank – as flagged in a 2024 health ombud report.
Galada said the cuts have also hindered planned maintenance, directly impacting the provision of quality public health care.
“These are some of the major projects affected. It means they have had to be delayed until we receive additional funding. Planned maintenance such as replacing ceilings, plumbing or tiles cannot go ahead,” he said.
He attributed the cuts to the “disastrous implementation” of projects by the Gauteng department of infrastructure development (DID), citing mismanagement and litigation.
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Mismanagement and litigation cited as root causes
“DID would enter contracts with service providers and we are just a budget holder. As part of those contracts there were issues between DID and service providers, to the extent that they brought litigation.
“Service providers took DID to court and in some instances DID did not defend the cases and as a result lost some of those cases,” Galada said.
He said money was diverted from service delivery to DID but DID had already paid the service providers and wanted to recoup that money from the health department.
Health budget redirected to settle DID debts
“DID and Treasury agreed that they needed to recoup that money from department of health. We had to stop service delivery and take the money to DID,” he said.
Galada warned that the Kopanong Hospital project, which was implemented to accommodate Covid patients, is at risk of becoming a financial sinkhole.
“Over R90 million has already been spent. If the project is not completed, that money will have gone to waste.
“Leaving it unfinished also incurs extra costs because security is needed to safeguard the facility.
“If we do not secure it, it will be vandalised. If we complete and repurpose it, there will be value,” he said.
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