anneke, Author at Solidariteit Beweging

Solidarity’s fight against the National Health Insurance (NHI) Act

Posted on July 30, 2024July 30, 2024 by anneke

What is the National Health Insurance Act?

National Health Insurance (NHI), under state control, is proposed as the single purchaser of all healthcare in South Africa. One of the most notable problems with this proposition is that as soon as a specific service is covered by the NHI, it would become illegal to receive it through any means other than the NHI. The state would therefore not just be the single purchaser, but would effectively control which health services would be available in South Africa, as well as how and by whom those services may be provided.

In June last year the National Assembly agreed to the National Health Insurance (NHI) Bill making provision for the introduction of the NHI, and in December the Bill was also approved by the National Council of Provinces. Weeks before the national election in May 2024, President Cyril Ramaphosa signed the Bill into law. This Act sets out to offer “free” healthcare to all citizens, including expensive medical procedures currently done in private hospitals. Although it seems like a noble notion, it is however important to note that the free healthcare the government already provides in state hospitals and clinics is already unsustainable and these facilities are in unthinkably awful conditions. The NHI is an unaffordable attempt from the state which would drastically cut the income of its citizens, as it would be mainly funded by a very small number of taxpayers.

The Minister of Finance did not budget for a reasonable amount for the implementation of the NHI, which implies that the Treasury does not foresee the actual implementation of the NHI in the near future. This was also the case with the previous submissions of the Bill, and now, with the Bill having been passed, the officials concerned still did not provide for this constitutional requirement.

Even so, the funding structure proposed in the NHI Bill makes provision for a new payroll tax, as well as for a surcharge on income tax. This is in addition to general tax revenue and a planned re-allocation of provincial budgets and conditional allocations, as well as from tax credits for medical schemes.

If the government projections made at that time are to be believed, the NHI will result in the budget deficit being further increased by about R32 billion. A more realistic calculation, as shown in a research report by the Solidarity Research Institute (SRI), shows a deficit of R295,93 billion as an absolute minimum. Treasury cannot afford a deficit of R32 billion, let alone a deficit of R295,93 billion.

Theoretically, R295,93 billion could be generated by abolishing the medical tax credit (about R30 billion) and levying the following taxes:

A 40% surcharge on income tax;
Increasing VAT from 15% to 22%;
A payroll tax of 13,4%;
Increasing corporate income tax from 27% to 45%; and
A combination of these.

In real terms, none of these is possible, because the South African taxpayer is overtaxed.

The theoretical examples given here above serve as illustration purposes only and to demonstrate the absurdity of the NHI.

The National Health Act and a victory in court

On 24 June 2024 Solidarity managed to have one of the major cornerstones of the proposed National Health Insurance (NHI) pulled down by means of its legal action when the North Gauteng High Court declared sections 36 to 40 of the National Health Act unconstitutional. The court also granted a cost award against the respondents.

According to Solidarity, the state’s goal with these sections in the National Health Act clearly was to pave the way for the NHI.

“The government wants to change to a system in which health care is nationalised and health care practitioners become servants of the state so that the provision of all health care can be centrally controlled by the state. This victory thwarts those disastrous plans,” Solidarity Chief Executive Dr Dirk Hermann said.

Sections 36 to 40 of the National Health Act provide that health care practitioners obtain a certificate of need (CoN) from the Department of Health before they can establish a practice in a specific area.

By declaring these sections unconstitutional, this court ruling will have an impact on the implementation of the NHI Act and will complicate the processes to implement it.

After the court ruling by the North Gauteng High Court, the Minister of Health, Dr Aaron Motsoaledi, denied that the ruling on the National Health Act made the National Health Insurance (NHI) Act vulnerable, denying any connection with the NHI Act while accusing pressure groups of spreading “toxic propaganda”.

However, his own department’s spokesperson, Foster Mohale, was quoted on multiple occasions in the past, reaching this exact conclusion that the two are connected when the sections were first declared invalid in 2022.

“The ruling has serious implications for the implementation of the National Health Insurance (NHI), and the Department of Health will request that the ruling be overturned and will contest the case in the Constitutional Court,” Mohale said at the time.

Hermann says that the government does not have a track record of “doing the right thing,” and Solidarity will therefore be ready to continue the fight in court.

What are the implications of the NHI for South Africa?

Dr Eugene Brink, strategic advisor for community affairs at AfriForum, also explored the implications of National Health Insurance in an article published on Solidarity’s platform. He writes that the NHI could be very dangerous if ever fully implemented.

In his article he quotes Bloom Financial Services, which stated that the NHI would destroy comprehensive medical schemes. “Once implemented, medical schemes won’t be able to offer any health services already offered by the NHI. Medical aid will only offer you extra services not covered by the NHI.”

Brink also pointed out that all healthcare funds would be centralised (actually nationalised) in a single state-controlled fund. Given what the government as curator of tax money has caused as a result of blatant corruption and abuse, this is a chilling thought.

The medical aid fund Discovery offers further criticism in this regard, also quoted in Brink’s article: “Our strong view is that limiting the role of medical schemes would be counterproductive to the NHI because there are simply insufficient resources to meet the needs of all South Africans. Limiting people from purchasing the medical scheme coverage they seek will seriously curtail the healthcare they expect and demand. It poses the risks of eroding sentiment and of denuding the country of critically needed skills, and is impacting negatively on local and international investor sentiment and business confidence.”

Brink also refers to Prof. Nicola Theron and Dr Paula Armstrong of FTI Consulting who recently wrote that to insist that the only path to universal healthcare (UHC) is through a single pool of funds managed by the government and the erosion of the role of medical schemes as purchasers of medical services would probably contribute to the demise of a strong and well-functioning private healthcare section. It narrows consumer choice, erodes competition and may even lead to the same outcomes as recent examples of what has become of state-owned enterprises and funds. Read the full article here.

No end in sight for the fight against the NHI yet

“Solidarity is vehemently opposed to the NHI and is strongly in favour of a market approach, offering a choice to private service providers and to the public, while at the same time being in favour of an improved public healthcare system. NHI will ruin South Africa and Solidarity is preparing for a major court battle to ensure that the healthcare sector is free, safe and prosperous,” Brink concluded his article.

This week in South African news

Posted on July 1, 2024July 1, 2024 by anneke

What is news in South Africa this week (28 June 2024)? From waiting in suspense for the announcement of the new cabinet to racial and political incidents to newspapers closing down. If you are interested in South Africa, here are some impacting headlines in this week’s news.

The suspension of DA Member of Parliament raises concerns of unfairness in the management of racial issues

Old skeletons have been rediscovered in politicians’ closets after being sworn in as members of parliament. A video of Democratic Alliance (DA) Member of Parliament Renaldo Gouws taken 14 years ago was spread on social media.

In the video, Gouws expresses his concern about the rise of racism, hate speech and double standards in the condemnations thereof in South Africa. Gouws specifically refers to the song Economic Freedom Fighters’ (EFF’s) leader Julius Malema and his followers sing, “Dubula amabhunu. This song translates as “Shoot the Boer”.

Per illustration, Gouws starts off by using grotesque discriminatory language towards black people and talks about killing them. Then Gouws stops and says that this is not his opinion. He then asks the viewers to reflect on how they felt after hearing this.

Gouws made this video to illustrate “how white people feel” when the EFF sings their controversial song. Gouws further explains that South Africans should be consistent in their condemnation of racism.

Three years after posting the video, Gouws took it down with an apology. After the video resurfaced, Gouws apologised again unconditionally, but he was temporarily suspended as a member of the DA. He lost his position as member of parliament, and an investigation is pending against him. The Human Rights Commission also filed a complaint, challenging him in a court case.

Why is this unfair?

Shortly after Gouws’ suspension, another video, this time of Member of Parliament and uMkhonto WeSizwe (MK) Party member Andile Mngxitama, resurfaced calling for the genocide of white people. In the video Mngxitama encourages his followers to kill five white persons for every black person killed.

At this stage, no action was taken against Mr Mngxitama in contrast to the drastic action taken against Mr Gouws.

Photos of Ian Cameron, also a DA Member of Parliament, have been spread on social media. These photo’s were taken with his face painted black when he partook in protest action against racism 18 years ago.

Watch this video of Ernst Roets, head of policy at the Solidarity Movement, explaining the details of the event: https://fb.watch/s_720DaWOY/

Renaldo Gouws made the news this week for being suspended from the DA.

President Cyril Ramaphosa to announce the cabinet this week; crisis arose as the president went back on a promise

With the new cabinet expected to be announced soon, President Cyril Ramaphosa caused a crisis in the new Government of National Unity (GNU) when he retracted a promise he made to the DA during the negotiations. President Ramaphosa promised the DA the key ministerial position of Trade and Industry. On Wednesday 27, June he retracted the offer and proposed the alternative portfolio of Tourism.

DA leader John Steenhuisen was disappointed by the decision. The position of Trade and Industry was part of the negotiation process. The DA saw it as an opportunity to make a real difference in the country’s economy and growth.

President Ramaphosa’s decision came after a meeting with the ANC structures. The ANC promised the DA six ministerial potions. The DA tried to negotiate for eleven cabinet positions out of the 30 positions available.

With the stability of the GNU coming under threat as the DA might reconsider its cooperation, the value of the rand weakened by 1,27%. This shows that a GNU with the DA is necessary for South Africa’s economy.

Fortunately for South Africa, John Steenhuisen and President Cyril Ramaphosa found a way to work around this issue. There is now stability in the negotiations on cabinet positions.

The DA was promised ministerial positions in public affairs, basic education, public works and infrastructure, and communication and digital technology, among others.

DA leader John Steenhuisen and president Cyril Ramaphosa made headlines in this weeks news. — DA leader John Steenhuisen and president Cyril Ramaphosa were headlines in this weeks news.

Debate continues on the shutdown of the Afrikaans press while CEO walks away with millions

Leading news company Media24 announced that it will discontinue printing certain newspapers, among them well-known Afrikaans newspapers such as Beeld and Rapport. Citing financial reasons for the decision, Media24 announced these publications will only continue as digital publications. This decision means 400 employees will likely be retrenched.

This news came as a shock to the Afrikaans community who supported these newspapers throughout the years. While fiery debate on the matter continues, news came to light that Bob van Dijk, the CEO of Naspers which owns Media24, received compensation of R330 million in the previous financial year and will continue to receive R2,2 million for the next two months.

Solidarity Chief Executive Dr Dirk Hermann says Van Dijk’s compensation alone will be able to cover the losses Media24 are facing. Solidary says it will stand by its members at Media 24 who are now facing retrenchment, and it will demand answers from these companies. Solidarity also submitted a request to the Commission for Conciliation, Mediation and Arbitration (CMMA) to guide the process.

Thanks to AfriForum, midwife will appear in court for negligence causing the death and disability of babies

AfriForum, one of the institutions of the Solidarity Movement, is a civil rights organisation that frequently supports civilians in their court cases. Two women approached AfriForum to help them to open a case against a midwife guilty of malpractice, which tragically resulted in severe consequences for the babies of these women.

The one woman’s baby died nine days after birth, and the other’s baby was left disabled because the midwife neglected to call in medical assistance when needed after the birth.

The midwife will appear in court for the first time in July on charges of assault.

Read the article here: https://afriforum.co.za/en/former-midwife-who-allegedly-caused-complicated-births-to-finally-be-prosecuted/

Solidarity won two cases for workers unfairly discriminated against in the workplace

Solidarity is an institution of the Solidarity Movement and it supports persons with work-related issues. Solidarity recently won two cases on behalf of persons unfairly discriminated against in their workplace based on their race.

In the first case, an employee was falsely accused of racism because of a fault in the company’s system, and the employee was discharged with immediate effect. The employee responsible for allocating parking spots accidentally and due to a fault in the system reallocated the parking spots of two black senior employees.

When realising this mistake, the employee immediately apologised and corrected the mistake. The two senior employees still decided to submit a formal complaint of racism. The court found that there was no proof of such action, that the employee made an honest mistake and corrected it immediately. The company has to pay the employee an amount of R150 000 in compensation.

In another case, a police officer of the South African Police Service (SAPS) applied for promotion as Captain along with other candidates. After interviews, the reviewing team found that this SAPS officer was the best and most qualified candidate for this promotion.

The employee had 24 years of work experience at the SAPS. The department decided not to promote this employee but instead to adhere to the Employment Equity Act, and consequently no-one was appointed in the position.

Solidarity supported the employee with further action under the guidance of the CCMA. The CCMA found that the employee should have been promoted and was unfairly treated as no valid reason could be provided for the employee not being promoted, taking into consideration his long-term service in the SAPS.

Solidarity says these two cases should serve as a warning to institutions and employers that unfair labour practices will not be tolerated.

Read the articles here

https://aanlyn.solidariteit.co.za/publieke/artikel/solidariteit-wen-saak-vir-lid-wat-valslik-van-rassisme-beskuldig-was

https://aanlyn.solidariteit.co.za/publieke/artikel/solidariteit-gee-die-sapd-bloedneus-oor-onbillike-arbeidspraktyke

GNU: Updates and what lies ahead

Posted on June 20, 2024 by anneke

As the first sitting of parliament after the recent general election commenced on Friday 14 June, South Africans were still uncertain about the government of national unity as the relevant parties remained silent on the negotiating process between them.
Just after 12:00 a trusted source confirmed to the media that the ANC had signed an agreement for a government of national unity (GNU) with the DA and the IFP. Later on more parties joined in on the agreement.
The parliamentary sitting started at 10:00 on Friday morning and continued to approximately 18:00 the evening. President Cyril Ramaphosa was re-elected as State President. Thoko Didiza (ANC) was elected as speaker and Annelie Lotriet (DA) as deputy speaker.
Here are the updates you need to know and a glimpse of what the new government means for South Africa and the community at large.

President Cyril Ramaphosa is inaugurated for his third term as president
On Wednesday 19 June President Cyril Ramaphosa was reinaugurated for his third term as the president of South Africa at the Union Buildings in Pretoria. Part of the agreement between the DA and ANC, was that the DA would support Ramaphosa in votes to stay in his position as president. Solidarity attended the ceremony as representatives of the Afrikaner.
In his address, President Ramaphosa underscored the significance of cooperation. He affirmed that the ANC wholeheartedly acknowledges the outcomes of the national election, recognizing the voice of the South African populace. He stressed that political parties should now adhere to these results through collaborative efforts.

President Cyril Ramaphosa during his presidential inauguration

The ANC, DA, IFP, GOOD and the PA are officially part of the GNU
For the first time in the history of South Africa, the government resembles a broader range of people and their different needs and governs with far more votes than the 50% needed.
After the ANC, DA and IF concluded an agreement before the parliamentary sitting, GOOD and the PA also agreed to join the Government of national unity.
It is crucial to emphasize that not all parties have the liberty to join the Government of National Unity at will. Only those parties willing to abide by the negotiated terms and sign an agreement can participate in the government. Parties such as the EFF and MK has shown no interest to join the GNU.

The negotiations will continue
The negotiations on the GNU are not over yet, on the contrary, it can now start. The president still has to appoint ministers in the cabinet and the parliamentary portfolio comities still needs to elect chairman in each portfolio.
The DA and ANC argued on the term “broad representation” that the DA suggested. If this concept is implemented, it would mean ministers and chairman are appointed according to the number of votes each party obtained in the election.
President Ramaphosa rejected this proposal during the initial round of negotiations.

What does the new government mean for South Africa?
First of all, South Africa is at a better place than three weeks ago
Dr Dirk Hermann, Solidarity’s chief executive, says it is a positive development that the ANC no longer has free reins to govern the country on its own. This situation could signify positive implications for legislation such as the NHI Act and the BELA insofar as such legislation may now have to be revised, while it would not be possible to sign new laws without reaching consensus with the other parties in the GNU.

South Africa is still in an unstable position
A “better position” does not mean a stable position. According to Hermann, the political situation remains unstable, and many familiarities may be subjected to change. South Africans should not drop their guard and celebrate as if all has taken a turn for the good.

There may be more room for cultural development
According to Hermann, these election results show a rise in cultural groups voting for the same party, especially among the Zulu community. For the first time the political landscape might be ready to accommodate certain cultural communities to grow and build in their own communities. The Solidarity Movement will have more opportunity to advocate for “spaces” in communities for independent growth.

Time will tell what the immediate political future hold. There are reason for hope, but it is also important not to expect that change will happen over night. We will keep our readers informed.

Government of Unity: South Africans prefer a DA-ANC agreement

Posted on June 12, 2024June 13, 2024 by anneke

After three decades of opposition, both the Democratic Alliance (DA) and the African National Congress (ANC) are articulating their readiness and capability to collaborate within a framework of national unity governance.

This development is both surprising and welcomed, particularly in light of recent statistical findings indicating that the majority of supporters from both the DA and the ANC favour such a coalition agreement.

The Brenthurst Foundation published statistics showing both DA and ANC supporters would prefer a Government of National Unity where the ANC and DA are the biggest role-players.

40,2% of participants voted towards a DA-ANC agreement, 37,4% of ANC-supporters indicated they prefer an agreement with the DA rather than the MK or EFF.

A coalition or unity government with the DA would benefit the country in numerous ways, including protection of the Constitution and promising economic growth. The DA has also shown its competency in governing provinces where it has the majority votes, such as the Western Cape.

As the clock are ticking toward Friday, when the first national parliamentary meeting will take place, suspense and tension is rising. Will the DA and ANC be able to conclude their negotiations before then?

John Steenhuisen, party leader of the DA, says the announcement of the first parliamentary sitting on Friday complicates the negotiations for a unity government and if no agreement is reached before then, the DA will return to the parliament as the opposition again. Friday’s sitting will include the swearing in of the new president.

The negotiations between the DA and the ANC are still ongoing and far from reaching a resolution. According to Steenhuisen, urgent acceleration of the process is needed if they aspire to establish an alliance before the impending parliamentary sitting on Friday.

The Economic Freedom Fighters (EFF) and uMkhonto we Sizwe (MK) have openly voiced their disapproval of the ANC engaging in negotiations with the DA, resulting in their abstention from participation in the negotiations. Moreover, dissenting factions within the ANC, opposed to President Cyril Ramaphosa, are also voicing criticism against the negotiations with the DA. There is a possibility of protests led by MK supporters escalating in KwaZulu-Natal, reflecting a rejection of this collaborative endeavour.

Protests are however a small price to pay and easy resolvable, considering the alternative of the Constitution being compromised for outdated socialistic ideologies and the economy suffering as investors withdraws assets form the market.

The people of South Africa are placing their hopes on the DA and the ANC to reach an agreement before Friday and to formally declare their collaboration in the government of national unity.

Election results full of risks and opportunities for South Africa

Posted on June 7, 2024June 13, 2024 by anneke

The ANC (African National Congress), which has ruled South Africa with majority governments since 1994, lost its majority for the first time ever last week when the party’s support fell from 57% to 40%. The party also lost its majority in three provinces, Gauteng, the Northern Cape and KwaZulu-Natal, while the opposition Democratic Alliance retained control of the Western Cape. South Africa will henceforth be governed by coalitions or opposition parties at national level, as well as in four of the nine provinces.

It is clear that a large majority of South African voters are angry about the corruption, mismanagement and missed opportunities that have made South Africa a near-failing state with some of the highest unemployment, poverty and crime rates in the world. South Africa’s infrastructure is crumbling, there are large electricity shortages, the government’s debt is increasing sharply, the economy has completely stagnated and started to shrink again during the first quarter of 2024 and foreign investors are systematically withdrawing from the country.

A large majority of black South Africans have a historical bond with the ANC because they have always felt that this party deserves credit for ending Apartheid. However, these same black people are increasingly outraged at the enrichment of a small group of black leaders who use government contracts and corruption to enrich themselves at the expense of poor black communities.

While black voters sought other political destinations, many simply refused to vote. Over the past ten years, there has been a continuous decline in the voting percentage among black South Africans. It fell to a historic low in this year’s election. While less than two-thirds of eligible voters were registered to vote, only 58% of registered voters went to vote. This means that less than 40% of those entitled to vote participated in the election. Only one third of black voters went to vote.

The decision not to register as a voter or not to vote is a clear protest by black South Africans who still struggle to vote for a party other than the ANC. However, where other parties with black leaders came to the fore, voters did swing away from the ANC in large numbers.

In Kwazulu-Natal the ANC’s support dropped from 60% to less than 20%. It was a clear ethnic Zulu protest vote because a majority of Zulus feel that the ANC has turned its back on the Zulu population and that most Zulu leaders have been thrown out of the party. The former president Jacob Zuma’s new MK party, although dangerously radical, therefore tapped into this feeling of alienation from Zulu voters and was able to win 45% of the votes in the province and thus also become the third largest party nationally.

In Gauteng, ANC voters also defected to other parties, which dropped the party’s support from more than 50% to just 35%. In the Northern Cape, poor coloured voters, formerly ANC supporters, voted for the new populist Patriotic Alliance. In the Eastern Cape, the home of Xhosas and a heartland of the ANC, the party’s support also fell and small black parties such as the United Democratic Movement grew considerably.

The radical Economic Freedom Fighters (EFF) of Julius Malema who are known for their singing of the song “Kill the Boer, Kill the Farmer” have also lost support which is a good indicator that the space for racist, hateful parties is limited.

White voters went to vote in large numbers with the turnout among whites being over 80%. White voters also voted very strategically and mostly cast their vote for the liberal Democratic Alliance, which cost more conservative parties such as the Freedom Front Plus considerable support.

Various political parties will now have to work together to establish workable and stable governments at national level but also in provinces such as Gauteng, still the economic heartland of South Africa and Kwazulu-Natal, also a major economic centre.

South Africa is a country that is already in a multi-faceted and deep economic, political and social crisis. The country’s education, police service, infrastructure, fiscal policy and most other government services are in crisis. Foreign investors are leaving the country while the highly skilled are emigrating at an accelerating rate. Populist leaders threaten violence, uprisings and anarchy. Ultimately, wise leadership will be needed to put the country back on the winning track.

The Solidarity Movement, as the largest representative of minorities and in particular Afrikaners, gave its conditional support for a type of multi-party government, with the exclusion of radical parties, because the ANC cannot be trusted to govern alone. The Movement also said it will participate in a national dialogue to put South Africa on a new path, where everyone gels can enjoy equal treatment without racial laws.

The Movement, however, said its conditions for support include political space for cultural self-realization, the scrapping of the Bela draft law (which wants to nationalize education) and the NHI law (which places all health care with the government and seriously threatens private health care), and market-friendly economic policies that will promote growth, job security and job creation.

The political changes may be an opportunity for South Africa but it also create numerous risks. Only time will tell which way the country will go.