The Democrat Alliance is challenging the Gauteng Health Department to sanction a hospital security company that has reportedly failed to pay over provident funds collected from its workers.
According to Zwelinzima Vavi of the South African Federation of Trade Unions (SAFTU), Mafoko Security Patrols has disregarded hundreds of complaints by its security guards that money deducted from their wages has not been paid into a provident fund.
This company has several contracts to guard Gauteng hospitals, including a R58 million a year contract for 206 guards at the George Mukhari Hospital.
The Ga-Rankuwa High Court has found in favour of workers concerning determinations by the Pension Funds Adjudicator on the pay-over of provident fund money.
Vavi estimates that Mafoko owes workers between R111 million and R330 million in contributions.
According to Section 13A of the Pension Funds Act, employers are required to pay member contributions to a retirement fund, and non-compliance can result in criminal sanctions, including fines and imprisonment.
I have tabled official questions in the Gauteng Legislature asking whether the Department will lay criminal charges against Mafoko, cancel their contracts and put them on a blacklist for future contracts.
Hospital security costs have ballooned suspiciously from R655 million in 2022 to an astounding R2.54 billion this year. I suspect corruption as many security companies seem to be grossly over-charging while underpaying their workers. There have been strikes by security guards who say they have not been paid for months.
The Department needs to set an example with Mafoko by sanctioning them for the poor treatment of their guards that has been reported.
The DA will continue to pressure the department to review high security costs to ensure value for money as the priority should be to use the budget for quality treatment in hospitals and clinics.