Public protector slams Charlotte Maxeke repair delays, R342m underspend

The public protector has blamed bureaucratic infighting and gross underspending for stalled repairs at Johannesburg’s Charlotte Maxeke Hospital.

A scathing report released on Friday took direct aim at Gauteng’s department of health (DoH) and department of infrastructure development (DID).

The public protector investigated the delays in completing fire repairs and maintenance at the hospital after a fire in April 2021.

The investigation established a clear causal link between project delays, lack of accountability and substantial budget underspending by the two departments, thus affecting service delivery.

Public protector Kholeka Gcaleka said the weight of evidence supported the finding of maladministration and failure to meet constitutional and statutory obligations by the departments.

“The conduct of the functionaries of the departments of health and infrastructure development constitutes improper conduct, amounts to maladministration, undue delays and improper prejudice to healthcare users and staff at the hospital,” Gcaleka said.

In her investigation, Gcaleka found there was a chronic lack of proper co-ordination and poor project management.

There were also repeated disputes and bureaucratic friction between the two departments which were primary contributors to the delays.

In addition, there were procurement bottlenecks characterised by widespread delays, including a staggering three-month gap in appointing key contractors after receiving Treasury approval.

Gcaleka said there were systemic inefficiencies in getting the job done.

“The inefficiencies point to a lack of institutional capacity, a compromised system that creates a breeding ground for corruption, or both.”

Gcaleka said between 2021 and 2024, R666m was allocated for fire repair works and maintenance at the hospital.

However, as of March 2024, only R324m (51.3%) had been spent, leaving R342m that was not used.

She said significant underspending, administrative delays, procurement bottlenecks and misaligned planning directly escalated project costs.

There was enhanced project execution and improved delivery mechanisms after a decision was taken to hand project management over to the Development Bank of Southern Africa (DBSA).

Gcaleka said the decision to outsource the completion of the project to the DBSA implementing agents was appropriate and strategic, leveraging their proven capacity for large-scale infrastructure delivery, stronger governance frameworks and accelerated execution.

Gcaleka contrasted the state’s failure with the prompt, efficient execution demonstrated by private donors.

She said of the donors involved, the Gift of the Givers and the Solidarity Fund successfully and promptly completed turnkey renovation projects, allowing critical areas like the accident and emergency unit and the dry store to reopen.

Private donors demonstrated strict cost control, financial efficiency, strong discipline, transparent execution and achieved compliance objectives while returning a substantial surplus to the budget, she said.

Gcaleka noted with concern that this lack of co-ordination and inefficient use of public resources between the DID and its client departments was a recurring pattern.

Similar failures, financial irregularities and cost escalations due to bureaucratic conflicts were previously observed in the Mayibuye Primary School construction projects.

In her remedial action, the public protector directed Gauteng premier Panyaza Lesufi to subject all supply chain management and financial management officials at both the Gauteng DID and DoH to risk-based lifestyle audits, conducted in collaboration with the Special Investigating Unit, and report outcomes to the department of public service and administration.

Gcaleka also directed the premier to authorise a skills assessment and performance review mechanism for DID personnel involved in procurement and infrastructure project management to build human resource capacity and accountability.

She also directed the premier to, within 30 days of the receipt of the report, identify and take appropriate disciplinary/consequence management action against the implicated accounting officers still in state employ for failing to uphold provision of the Public Finance Management Act.

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