Deputy Minister Bantu Holomisa has callsed for public-private partnerships to tackle SAMHS funding challenges, urging collaboration to modernise military health facilities for South Africa’s defence personnel.
Image: Armand Hough/Independent Newspapers
Deputy Minister of Defence Bantu Holomisa has called for the South African government to explore collaborations with the private sector .
He emphasised that such partnerships are crucial for supporting the development and maintenance of military infrastructure, particularly given the financial challenges facing the South African Military Health Services (SAMHS).
Speaking during an oversight visit to the 2 Military Hospital in Cape Town on Wednesday, Holomisa stressed the urgent need for private sector involvement in military health infrastructure.
His visit aimed to assess the readiness of the South African National Defence Force (SANDF) ahead of its planned deployment to gang-stricken areas in the Western Cape, as outlined by President Cyril Ramaphosa in the State of the Nation Address (SONA).
Holomisa raised concerns about the underfunding of the SANDF, pointing out how this has directly impacted the maintenance of critical military facilities, including military hospitals and healthcare services.
He noted that since the government shifted its budget priorities after 1994 towards social security, much of the national budget has been directed at social wage grants, leaving military infrastructure underfunded.
“The military facilities in this country, including hospitals and bases, were once institutions that received significant attention and a substantial portion of the national budget. After 1994, the policy focus shifted toward social security rather than military security,” Holomisa said.
This financial strain, according to the deputy minister, has left key facilities such as SAMHS unable to maintain or upgrade their ageing infrastructure.
He further stated that the Department of Defence has been placed under sustained financial pressure, struggling to meet the needs of its members and veterans while maintaining these critical facilities.
"The Department of Defence has therefore been placed under sustained financial strain in attempting to maintain ageing infrastructure while providing essential services to our members and veterans," he added.
Holomisa suggested that public-private partnerships (PPPs) could provide a solution to the growing infrastructure challenges.
He emphasised the need for the leadership of SAMHS to engage with SANDF commanders to explore credible private sector partners who could help modernise and maintain military health facilities.
“It is therefore imperative that the leadership of the South African Military Health Service engages with the commanders of the SANDF to explore public-private partnership arrangements with credible private sector partners,” Holomisa said.
He expressed hope that such partnerships would accelerate the recovery of SAMHS and enable the development of modern, fit-for-purpose medical facilities equipped with the latest technology.
Holomisa also referenced the Government of National Unity’s consistent call for private sector involvement in infrastructure projects, highlighting that such collaborations could help address issues like project delays, corruption risks, and tender disputes.
He believes that partnering with the private sector could streamline development, ensuring timely delivery of critical infrastructure.
“Such partnerships could accelerate the recovery of SAMHS and allow us to develop modern, fit-for-purpose facilities equipped with up-to-date medical technology,” Holomisa said.
In addition to PPPs, Holomisa proposed that the government should explore ways to leverage funds from the Public Investment Corporation (PIC) to assist with military infrastructure development.
Holomisa pointed to the PIC’s success in developing commercial properties in major economic nodes and suggested that similar investment models could be applied to military health facilities.
"If the PIC is able to develop premium commercial properties in major economic nodes, there is no reason similar investment models cannot be applied to military hospitals," Holomisa said.
Holomisa also voiced concerns about the current investment strategies of the PIC, particularly regarding government employees’ pensions.
He argued that funds like the Isibaya Fund should prioritize investments in infrastructure that guarantees sustainable returns, rather than exposing pensioners' savings to high-risk ventures.
“There is no reason why strategic portions of defence infrastructure, particularly hospitals and health facilities, cannot form part of long-term, secure property investments,” he said.
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