Appearing before the Public Accounts Committee (PAC) yesterday, Permanent Secretary in the Ministry of Finance Tshokologo Alex Kganetsano confirmed that indeed they received a proposal from an investor to build clinics and schools. He disclosed that the investor was proposing to put funds into the project and rent out the clinics and hospitals to government after completion. He said they made clear from the beginning that the financial implications in the deal were huge and that is why they had to send it back.
Kganetsano told PAC that the Finance ministry made it clear that government was not at a stage where it could borrow money to fund the project. He said as the caretakers of the country’s coffers they were brought in on the deal at the initial stage because they had to advise on the financials. “The initial proposal brought to our attention came from the ministries of Local Government and Health and that was before clinics were transferred to the local government. We told them that they should go and scale down and see to it that whatever they settle for will ultimately be accommodated within their budget,” the accounting officer further told PAC. He pointed out that at the moment they are still waiting as the sourcing ministry engages with the investor. He said they are still waiting for their final agreement after the parties settle.
